Gold, silver prices at a month-high

Kathmandu, December 30

Price of precious metals rallied to hit a month-high in the week between December 24 and 29, on a strong technical outlook and weakening US dollar.

Continued softness in the dollar bolstered bullion, with additional strength lent by commodities markets including copper and crude oil, traders said. The dollar retreated against a basket of currencies, with the index slipping to its lowest since late November on a less certain US economic outlook after the passage of major tax cuts.

In the domestic market, Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) had fixed gold price at Rs 54,900 per tola on Sunday and its price was not revised on Monday as the market was closed due to Christmas holidays. Bullion price rose by Rs 100 a tola to be traded at Rs 55,000 per tola on Tuesday. The price of the precious yellow metal surged by Rs 300 a tola each day for the next two days to be priced at Rs 55,300 per tola on Wednesday and Rs 55,600 a tola on Thursday. Gold price edged up by Rs 100 per tola on Friday to close the week at Rs 55,700 a tola.

Similarly, FeNeGoSiDA had set trading rate of silver at Rs 730 per tola and its price remained unchanged for the next two days. On Wednesday, silver price rose by five rupees a tola to be traded at Rs 735 per tola. On Thursday, the price of grey metal gained Rs 10 a tola to be priced at Rs 745 per tola and its price was unchanged on Friday.

The last time gold and silver were traded at the current level was back on November 30.

As US stock prices have risen up, breaking record after record in continuous sessions during 2017 and based on the dividend paid per stock, analysts say the prices have reached their logical limit and some aggressive corrections for prices will take place. This in turn, they opined, might drive some investors to allocate their investments from stocks to gold, building a strong demand-based momentum for gold.

Looking ahead, analysts also say that cryptocurrencies will likely fall in value in 2018 as such virtual currencies become more strictly regulated, sending investors into other safe havens like gold.