Kathmandu, May 20

Gold price surged significantly in the trading week between May 14 and 19 due to political turmoil in the international market.

The demand for the precious yellow metal, which is used as an alternative investment during times of political and financial uncertainty, shot up after a turbulent week when Trump fired FBI director James Comey and discussed sensitive national security information with Russia’s foreign minister. This caused investors to question whether Trump can push through tax cuts and deregulation.

The main reason for the rise in the price of precious metals was owing to the unfavourable political environment in America, Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) said in its weekly statement. “Even as the dollar strengthened towards the later part of the week, the exchange rate of the Indian rupee vis-à-vis the greenback fell, which aided in propping up the gold price.”

While the price of precious metals was not revised on Sunday, as the market remained closed for the local-level election, gold was priced at Rs 53,300 per tola when the market opened on Monday. The precious yellow metal rose by Rs 200 a tola each day over the next two days to be priced at Rs 53,500 per tola on Tuesday and Rs 53,700 a tola on Wednesday. On Thursday, bullion priced soared by a whopping Rs 1,000 per tola to be traded at Rs 54,700 a tola. Gold price dipped by Rs 200 per tola on Friday to close the week at Rs 54,500 a tola. The yellow metal recorded a gain of Rs 1,200 per tola or 2.25 per cent over the review period.

Similarly, FeNeGoSiDA had fixed the price of silver at Rs 740 a tola on Monday. The price of the white metal went up by five rupees a tola every day for the next three days to be traded at Rs 745 per tola on Tuesday, Rs 750 a tola on Wednesday and Rs 755 per tola on Thursday. The price of the white metal dipped by five rupees a tola on Friday to close the week at Rs 750 per tola. Silver price went up by Rs 10 a tola or 1.35 per cent during the trading week.