Precious metals come under pressure

Kathmandu, May 21

Gold price dropped by Rs 300 or 0.53 per cent and that of silver dipped by Rs 15 or 1.91 per cent a tola in the week of May 15 to 20.

The price of precious metals came under pressure during the week following the release of minutes of US Federal Reserve’s April policy meeting on Wednesday, according to Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA). The released minutes showed that the US central bank believes two rate increases in 2016 are firmly on the table, with the first one as early as June or July.

Moreover, the price of precious metals also came under pressure as investors sought to cash in on the price rise of the previous week, FeNeGoSiDA. “Should the current trend persist, the price of precious metals will likely drop in the coming week as well.”

The prices of gold and silver in the domestic market is based on the rates set in the international markets.

In the local market, the bullion price was fixed at Rs 56,300 per tola on Sunday and its price remained constant till Wednesday. Following the release of Fed’s minutes, the price of precious yellow metal fell by Rs 300 per tola to Rs 56,000 a tola on Thursday. Its price remained same on Friday.

Meanwhile, silver was priced at Rs 785 per tola when the market opened on Sunday. On Monday, the price of white metal edged up by five rupees per tola to Rs 790 a tola. On Tuesday, however, it rolled back the gain by dipping five rupees to Rs 785 per tola. Silver was traded at the same rate on Wednesday.

On Thursday, price of the white metal dipped by another five rupees to Rs 780 per tola and fell by Rs 10 a tola on Friday to close the week’s trading at Rs 770 per tola.