Gold price stable, silver rises
Gold price remained stable, however, silver price edged up by five rupees a tola over the week during August 7 to 12.
Bullion price remained more or less stable over the week due to signs of improvement in the US economy as the job growth in non-agriculture sector in the US exceeded the projection. Lower employment rate in the US has built up the possibility of an interest rate hike by the US Federal Reserve — the central bank of the US — as per its earlier plan in September. However, productivity of labour in US has been declining, which might create pressure on US dollar in near future, as per international media reports.
Similarly, Chinas’ squeezing industrial production has had an adverse impact on the Asian stock market. The fall of the Asian stock market can lure investors to the bullion market in the coming weeks, said the Federation of Nepal Gold and Silver Dealers’ Association.
“However, the lower unemployment rate in the US job market and steep fall in oil prices, which have positive correlation with bullion hints that there will be a selling spree of bullion in the coming week.”
Domestic market also witnessed stable rates of bullion as prices of precious metals in domestic market are governed by the rates set in the international market.
The market opened on Sunday with gold price fixed at Rs 58,900 per tola and remained constant till Tuesday. The precious yellow metal, however, edged up by Rs 300 a tola on Wednesday to be traded at Rs 59,200 per tola and remained unchanged on Thursday. Gold price slumped by Rs 300 per tola on Friday to be fixed at the same level as that of Sunday at Rs 58,900 a tola.
Meanwhile, price of silver increased by five rupees per tola during the six trading days of the week. The market opened on Sunday with silver price fixed at Rs 890 a tola and the price remained the same till Tuesday. Price of the white metal increased by Rs 10 per tola in a single day on Wednesday and was traded at Rs 900 a tola and remained stable on Thursday. Silver price went down by five rupees per tola on Friday to settle at Rs 895 a tola.
