Gold, silver lose lustre

Kathmandu, May 14

Gold and silver prices slipped by Rs 400 and five rupees per tola, respectively, over the week — between May 8 and 13.

Investors have been lured towards bullion market as safe haven following the bearish trend in stock markets. On the other hand, reduced job creation in non-agriculture sector in the United States, which could lead to depreciation of the US dollar, had rallied the price of gold in the international market as demand for the precious metal soared.

Gold is being traded at a two-year high in the domestic market since last week, according to the Federation of Nepal Gold and Silver Dealers’ Association. The prices of the precious metals in the domestic market are governed by the rates set in the international market.

The market opened on Sunday with gold price fixed at Rs 56,600 per tola. Price of the precious yellow metal dropped marginally by Rs 100 a tola on Monday and was traded at Rs 56,500 per tola. Gold price dropped in the middle of the week as buyers started to sell gold to reap benefits of peaking price.

Bullion price dropped by Rs 600 per tola in a single day on Tuesday to be fixed at Rs 55,900 a tola. However, buying spree in the international market again pushed the market price up. Price of the precious yellow metal on Wednesday surged by Rs 300 a tola to be traded at Rs 56,200 per tola and remained unchanged till Friday.

Likewise, price of silver also dropped by five rupees per tola during the five trading days of the week. The market opened on Sunday with silver price fixed at Rs 790 a tola and the price remained similar the next day.

Price of the white metal dropped by Rs 15 per tola on Tuesday to be traded at Rs 775 a tola. Silver price, however, again went up by Rs 10 per tola on Wednesday to be fixed at Rs 785 a tola and remained unchanged till Friday — the last trading day of the week.