Gold, silver prices descend

Kathmandu, May 5

The price of precious metals dropped marginally in the trading week between April 29 and May 5.

The Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) had set the price of gold at Rs 58,900 per tola when the market opened for trading on Sunday. Its price was unrevised on Monday as market remained closed to celebrate Buddha Jayanti.

On Tuesday, however, bullion price fell by Rs 400 a tola to Rs 58,500 per tola. It was traded at the same rate the next day. The price of the precious yellow metal bobbed by Rs 200 a tola over the next two days — to be traded at Rs 58,300 per tola on Thursday and Rs 58,500 a tola on Friday.

The federation had fixed the trading rate of silver at Rs 760 per tola on Sunday. Its price dropped by Rs 10 a tola to Rs 750 per tola on Tuesday. The price of the grey metal edged up by five rupees a tola to Rs 755 per tola on Wednesday and

remained constant for the remainder of the week.

Reuters reported that the demand for physical gold barely changed in major Asian hubs this week even as global prices weakened, while a correction in local rates in India prompted retail consumers and jewellers to start purchases.

In the March quarter, Indian gold demand fell 12 per cent from a year earlier to 115.6 tonnes, as jewellery demand dropped to the second-lowest level in 10 years, the World Gold Council said on Thursday.

But demand may improve through the year as positive monsoon rains and government efforts to raise farmer incomes could boost rural purchases enough to offset higher prices because of weak Indian rupee, as per Reuters.

In China, premiums ranged between $8 and $9 this week, unchanged from last week. The public holiday period earlier this week saw a pick-up in jewellery sales, though overall investment demand remained quiet in the world’s top consumer.