Gold, silver prices rise due to Brexit

Kathmandu, June 25

Gold and silver prices increased by a whopping Rs 2,000 and Rs 20 per tola, over the week between June 19 and 24.

Bullion price rallied in the international market after the referendum in Britain gave a mandate to exit from the European Union, which caused unpredictability in the global economy. Investors sought a safe haven from the plunging pound, which tumbled to its lowest level in 30 years on Friday. The precious yellow metal shot up 4.7 per cent to $1,315 an ounce in a single day on Friday after the result of the referendum was declared.

Gold price also shot up in the domestic market as the prices of the precious metals in the domestic market are governed by the rates set in the international market.

The market opened on Sunday with gold price fixed at Rs 57,000 per tola. Price of the precious yellow metal, however, dropped marginally by Rs 200 per tola on Monday and was traded at Rs 56,800 a tola. Its price remained constant till Tuesday. Bullion price tumbled by Rs 300 a tola on Wednesday to be traded at Rs 56,500 per tola and continued to free fall by Rs 500 a tola on Thursday. Gold price shot up by Rs 3,000 per tola in the domestic market, which is highest single-day gain in recent times, to settle at Rs 59,000 a tola on Friday as buying spree in the international market increased the demand of gold after the result of Britain’s referendum.

Likewise, price of silver also increased by Rs 20 per tola during the six trading days of the week. The market opened on Sunday with silver price fixed at Rs 800 a tola and the price remained similar till Tuesday. Price of the white metal slumped by five rupees per tola to be traded at Rs 795 a tola on Wednesday. Silver price again tumbled by five rupees a tola on Thursday and market price was fixed at Rs 790 per tola.

Price of the white metal, however, increased by a whopping Rs 30 per tola and was traded at Rs 820 a tola on Friday.