Gold price tumbles, silver witnesses gain
Kathmandu, November 4
Gold price dipped while silver edged up in the trading week between October 29 and November 3.
According to commodity analysts, gold is stuck in a rut and with little economic data out next week, the focus is on a potential rise in geopolitical uncertainty to break the market out of its current channel.
The main event for gold next week could be President Donald Trump’s 10-day Asian tour. Previously, heated rhetoric between the White House and North Korea has proven to be a bullish event, pushing gold higher. However, not all analysts are convinced that Trump will have anything new to say about North Korea, and that could keep gold range bound.
Another event that could impact gold next week is further rhetoric on Capitol Hill. Markets will now focus on political discussions surrounding the Republican tax-cut proposals.
Demand for physical gold was lacklustre in top consumers India and China this week, while the lure of the metal remained stable in Singapore, but India’s peak wedding season is expected to usher in renewed interest for bullion in coming weeks, as per Reuters.
In the domestic market, the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) had set the trading rate for gold at Rs 55,700 per tola on Sunday. The price of the yellow metal dipped by Rs 200 a tola to be traded at Rs 55,500 per tola on Monday and remained unchanged the next day. However, bullion price bobbed for the remainder of the week. It was down Rs 300 a tola to Rs 55,200 per tola on Wednesday, before recovering the loss of the previous day to be traded at Rs 55,500 a tola on Thursday, but reversing course again on Friday to end the week at Rs 55,400 per tola.
Meanwhile, FeNeGoSiDA had fixed silver price at Rs 760 a tola on Sunday. Its price dipped by five rupees per tola to be traded at Rs 755 a tola on Monday and was unchanged the next day. On Wednesday, the price of the grey metal fell by another five rupees per tola to Rs 750 a tola. On Thursday, however, silver price surged by Rs 15 per tola to Rs 765 a tola and remained stable on Friday.