Precious metals fairly stable
Kathmandu, April 22
The price of precious metals was fairly stable in the week between April 16 and 21.
This was because the safe-haven demand remained intact as investors kept an eye on the upcoming French presidential vote that is seen as too close to call, according to the Federation of Nepal Gold and Silver Dealers’ Association.
“The big news over the weekend will be the French election and the market will be to an extent on hold ahead of that,” Reuters quoted Jonathan Butler, Mitsubishi commodities analyst, as saying.
Investors were reportedly also watching the developments in the United States. “Over the next week or so, I think we’ll start to see whether the reflation trade is back on, which might be backed up by some announcements from the US administration on tax reform,” Barnabas Gan, an OCBC analyst, told Reuters.
US President Donald Trump’s administration will unveil a tax reform plan soon and expects it will be approved by
Congress this year whether a healthcare overhaul happens or not, Treasury Secretary Steven Mnuchin said on Thursday.
Gold is at risk of some profit-taking after a strong recent run, but should be supported by other factors, according to analysts.
Gold was traded at Rs 55,700 per tola when the market opened on Sunday and its price remained the same the next day. On Tuesday, price of the yellow metal dipped by Rs 100 a tola to be priced at Rs 55,600 per tola, but it bounced back by Rs 100 a tola on Wednesday to be traded at Rs 55,700 per tola. Bullion price dipped by Rs 100 a tola to Rs 55,600 per tola on Thursday and again shed Rs 100 a tola on Friday to close the week at Rs 55,500 per tola.
Meanwhile, silver was priced at Rs 815 a tola on Sunday and it was traded at the same rate the next day. On Tuesday, price of the white metal dropped by five rupees per tola to Rs 810 a tola and fell by five rupees a tola again on Wednesday to be priced at Rs 805 per tola. Silver price remained stable on Thursday, before slipping by five rupees a tola on Friday to close the week at Rs 800 per tola.