Gold, silver prices fall
Kathmandu, June 3
Gold and silver prices fell in the trading week of May 28 to June 2 on account of subdued demand of precious metals from jewellers, retailers and industries.
Ahead of the US payrolls release on Friday, traders were expecting some 90 per cent probability of a US interest rate increase in June. Though odds have been reduced slightly after a reading on US job growth fell short of forecasts for a strong payrolls jump in May and cast some doubt on the pace of gold-negative US interest-rate hikes this year, a rate increase is still priced in, according to CME Group’s FedWatch tool. It’s the likelihood for moves beyond June that could increasingly be the focus of financial markets.
Meanwhile, India — the second biggest consumer of the yellow metal — is going to introduce the new goods and services tax (GST) from July 1 that will replace a slew of federal and state levies. Anticipating a higher tax rate on gold, many Indian jewellers advanced buying in the last few months and it could mean the country’s gold imports could plunge during the traditional period of peak demand in the second half of the year.
“Many jewellers advanced purchases expecting a higher GST rate. Now, they don’t need to buy,” a Mumbai-based dealer with a private bank told Reuters.
In top consumer China, a festive holiday in beginning of the week limited the possibility of any new purchases, said a Hong Kong-based precious metals refiner.
Gold price was fixed at Rs 54,800 per tola by the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) when the market opened for trading on Sunday and its price remained the same the next day. Bullion price bobbed for the remainder of the week — up Rs 200 a tola to Rs 55,000 per tola on Tuesday; down Rs 300 a tola to Rs 54,700 per tola on Wednesday; up Rs 200 a tola to Rs 54,900 per tola on Thursday; and down Rs 300 a tola to Rs 54,600 per tola on Friday.
Similarly, FeNeGoSiDA had set silver price at Rs 770 a tola on Sunday and its price was unchanged on Monday. On Tuesday, the white metal edged up by five rupees per tola to Rs 775 a tola, but shed the gain the very next day to be priced at Rs 770 per tola on Wednesday. Silver was traded at the same rate on Thursday, before edging down by five rupees a tola on Friday to close the week at Rs 765 per tola.