Gold price down, silver up
Kathmandu, September 3
Price of gold fell by Rs 300 per tola while that of silver went up by Rs 10 a tola over the week of August 28 to September 2.
“Gold price had eased as the dollar strengthened ahead of US jobs data that was due on Friday, which was expected to provide clues on timing of a possible interest rate rise,” according to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA). “An upbeat payrolls report would reinforce the view that a US rate rise is on the cards, with Fed officials having sounded a hawkish note at a meeting last weekend, pressuring gold further.”
Gold is highly sensitive to rising US interest rates, which increase opportunity cost of holding non-yielding bullion while boosting the dollar in which it is priced.
However, gold prices edged higher in the international market on Friday after a disappointing ISM Manufacturing survey weighed against Fed rate hike bets, pushing the US dollar lower alongside bond yields and boosting the relative appeal of anti-fiat and non-interest-bearing assets. The data showed factory-sector activity unexpectedly contracted for the first time in seven months in August.
The price of precious metals in the domestic market is determined by its rates in the international market.
Gold was priced at Rs 58,500 per tola when the market opened on Sunday and its price remained the same on Monday. On Tuesday, the price of the precious yellow metal went up by Rs 200 a tola to Rs 58,700 per tola. On Wednesday, gold price slumped by Rs 300 per tola to be traded at Rs 58,400 a tola and fell another Rs 300 per tola on Thursday to be priced at Rs 58,100 a tola. Bullion price edged up by Rs 100 a tola to Rs 58,200 per tola on Friday.
“Meanwhile, silver price rose during the week in conjunction with general trend in international market,” according to FeNeGoSiDA.
Silver was priced at Rs 850 per tola on Sunday — first trading day of the week. The price of precious white metal fell by five rupees a tola on Monday to be traded at Rs 845 per tola. On Tuesday, however, it more than recovered the loss of the previous day as silver price went up by Rs 10 per tola to Rs 855 a tola. Silver was traded at the same level on Wednesday.
On Thursday, silver price slipped by five rupees a tola to be traded at Rs 850 per tola. But echoing the earlier trend, silver price went up again by Rs 10 per tola on Friday to close the week at Rs 860 a tola.