Gold, silver shine in domestic market

Kathmandu, January 4

Bullion prices rose considerably in the domestic market during the trading week between December 29 and January 3. Due to ongoing conflict between the United States and Iran, gold price hit a new record high price of Rs 74,500 per tola in review week.

According to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold price was fixed at Rs 73,300 per tola on Sunday and it remained constant on Monday. On Tuesday, price of the yellow metal went up by Rs 200 a tola to be traded at Rs 73,500 a tola and it remained constant till Thursday. However, on Friday gold price rose sharply by Rs 1,000 per tola to close the trading week at Rs 74,500 per tola in the domestic market.

As per FeNeGoSiDA, the Iran-US conflict led investors to invest in gold, which is considered a safe haven investment, that pushed up the price of gold in the international market and subsequently in the domestic market too. It has to be noted that gold price in the domestic market is set as per its price in the global market. FeNeGoSiDA further mentioned that gold price also rose in the domestic market due to the expensive US dollar.

Gold price went up by Rs 1,200 per tola in the review period compared to the closing rate of Rs 73,300 a tola in the previous week.

Meanwhile, silver price also increased in the review week.

As per the federation, price of the grey metal was Rs 885 per tola when the market opened on Sunday and reached Rs 890 a tola the next day, going up by five rupees per tola.

On Tuesday silver price reached Rs 900 a tola increasing by Rs 10 per tola. However, on Wednesday the price fell by Rs 10 a tola to be traded at Rs 890 per tola in the domestic market and it remained constant on Thursday.

On Friday, the price again rose by Rs 10 a tola to close the weekly market at Rs 900 per tola.

Silver price went up by Rs 10 a tola in the review period as compared to the previous trading week’s closing rate of Rs 890 per tola.

As per Reuters, gold prices surged on Friday to a four-month peak, racing past the key $1,550 an ounce level after a US air strike in Iraq killed the commander of Iran’s elite Quds Force, prompting a rush into safety assets.

Gold, like other safe-haven assets, benefits during times of political uncertainty. The metal was set for its best week since early- August, up more than 2.5 per cent.