Muted demand caps prices of gold, silver

Kathmandu, May 7

The price of precious metals fell in the week of May 1 to 6, with gold dipping by Rs 600 per tola or 1.05 per cent and silver down Rs 15 a tola or 1.86 per cent.

According to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), even as the price of precious metals had surged to multi-year high in the beginning of the week, lack of demand in major consuming countries — India and China — reversed the prices.

Nonetheless, data released by US Labour Department on Friday showed US employers added the fewest workers in seven months, weakening the case for the Federal Reserve to raise interest rates. “This could bolster the price of precious metals — considered a safe haven against global financial risks — in the coming week,’ as per FeNeGoSiDA.

The prices of precious metals in the domestic market are governed by their rates in the international market.

The market opened on Sunday with gold price fixed at Rs 57,000 per tola, a 25-month high. On Monday, however, the bullion price dropped by Rs 300 to Rs 56,700 a tola and its price remained constant on Tuesday. On Wednesday, gold price again went down by Rs 200 to be fixed at Rs 56,500 per tola and held constant on Thursday. On Friday, the price of the precious yellow metal dipped by Rs 100 again to be traded at Rs 56,400 per tola.

Similarly, silver was priced at Rs 805 per tola on Sunday — a 20-month high. On Monday, the white metal shed five rupees to be traded at Rs 800 a tola and its price remained the same the next day. On Wednesday, silver price dropped by another Rs 10 to be traded at Rs 790 per tola. Its price remained unchanged for the remainder of the week.