Kathmandu, February 11
The price of precious metals decreased in the trading week between February 5 and 10. In the domestic market, gold price fell by Rs 500 per tola, while silver price decreased by Rs 30 a tola during the review week.
According to the rate list of Federation of Nepal Gold and Silver Dealers' Association (FeNeGoSiDA), gold price was fixed at Rs 104,100 per tola when the market opened for trading on Sunday before increasing by Rs 500 a tola on Monday. The price of the precious yellow metal remained unchanged on Tuesday before rising by Rs 200 per tola on Wednesday. Its price went up again by Rs 100 a tola on Thursday before slumping by Rs 1,300 per tola to settle at Rs 103,600 a tola on Friday, the last trading day of the week.
Meanwhile, silver was traded at Rs 1,320 per tola on Sunday and its price remained unchanged till Tuesday. On Wednesday, the price of the grey metal decreased by five rupees a tola before gaining five rupees a tola on Thursday. Silver prices plunged by Rs 30 a tola on Friday to settle at Rs 1,290 a tola for the week, as per the FeNeGoSiDA.
According to international news agencies, physical gold buyers in some Asian hubs were drawn to a dip in domestic prices this week, while central bank demand kept premiums firm in China.
Local gold prices in India hit as low as INR 56,496 per 10 grams from an all-time high of INR 58,826 last week.
In the international markets, gold inched higher on Friday while markets awaited next week's US inflation data that could influence the Federal Reserve's monetary policy trajectory.
Fed policymakers have signalled they expect rates ultimately to go a bit higher - to just over five per cent - while traders are looking out for a terminal rate of 4.9 per cent in June. A quarter-basis-point rate hike has been priced in by most. Although gold is considered a hedge against inflation, higher interest rates tend to increase the opportunity cost of holding the non-yielding asset.
A version of this article appears in the print on February 12, 2023, of The Himalayan Times.
