Kathmandu, March 10

The price of precious metals dipped in the trading week between March 4 and 9.

“The reason for the drop in prices of precious metals can be attributed to market volatility and fluctuations in the foreign exchange rates,” the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) said in a statement.

The association had set the trading rate for gold at Rs 57,700 per tola on Sunday and its rate remained the same the next day.  On Tuesday, bullion price dipped by Rs 100 a tola to Rs 57,600 per tola. On Wednesday, the price of the

precious yellow metal rose by Rs 400 a tola to Rs 58,000 per tola. Gold price dropped by Rs 300 a tola each day for the following two consecutive days — to be traded at Rs 57,700 per tola on Thursday and Rs 57,400 a tola on Friday.

FeNeGoSiDA had fixed the trading rate of silver at Rs 745 per tola on Sunday and its price was unchanged on Monday. On Tuesday, silver price dipped by five rupees a tola to Rs 740 per tola. On Wednesday, the price of the grey metal went up by Rs 10 a tola to Rs 750 per tola.

Similar to gold, silver price fell in the last two days of the trading week. It fell by five rupees a tola each day — to be traded at Rs 745 per tola on Thursday and Rs 740 a tola on Friday.

In neighbouring India, gold was sold at a discount as demand remained subdued for a fourth straight week. But buying in the rest of Asia picked up as prices fell for a third consecutive week, according to Reuters.

“Retail demand is very weak. Despite the correction in prices, consumers are showing little interest in buying,” Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in the eastern Indian city of Kolkata, told the

news agency.

India’s gold imports in February dropped a quarter from a year ago to 63 tonnes as higher prices curtailed demand in the world’s second-biggest consumer of bullion, provisional data from precious metals consultancy GFMS and bank dealers showed.

Weddings and Akshay Tritiya festival, when buying gold is considered auspicious, could lift demand in April, Ajmera said.

Meanwhile in China, there was some good buying through the mid-week, with gold selling at a premium of $6 to $8 over benchmark rates this week, down slightly from $8 to $10 last week.

Gold prices extended losses into a third session on Friday as the dollar strengthened against the yen on hopes of easing tensions between the United States and North Korea.