Gold, silver down post US Fed meet

Kathmandu, June 17

Gold and silver prices fell in the trading week between June 11 and 16 as the Federal Reserve increased interest rates but was less dovish than expected.

It was the second time in three months that the Fed raised interest rates by a quarter percentage following a two-day meeting on June 13 and 14. Besides, the talk of normalisation of balance sheet size relatively sooner is what led to the fall in the precious metals pack, according to The Economic Times.

Oil, on the other hand, has lost its value. Increasing production in Nigeria and Libya, increasing rig count in the US, high global inventories and a stronger dollar are possible push factors for lower oil prices, as per analysts.

The Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) had fixed the price of gold at Rs 54,800 per tola when the market opened for trading on Sunday. Bullion price remained same for the next three days, before losing ground towards the end of the week. The price of yellow metal fell by Rs 100 a tola to be traded at Rs 54,700 per tola on Thursday and dropped by another Rs 200 a tola to close the week at Rs 54,500 per tola on Friday.

Silver price, which was set at Rs 765 a tola on Sunday by FeNeGoSiDA, was less stable during the review period. The price of white metal dropped by five rupees per tola each day on Monday and Tuesday, to be priced at Rs 760 a tola and Rs 755 per tola, respectively. Its price held steady on Wednesday and Thursday before dropping by five rupees a tola on Friday to rest at Rs 750 per tola.