Gold, silver prices fall
The price of precious metals dropped in the week of January 22 to 27, as renewed hopes that US President Donald Trump will unleash growth-friendly spending policies boosted shares and eroded bullion's safe haven attraction and Chinese demand ebbed ahead of the Lunar New Year festival.
"Change in policies of the United States and China — the world's top and second largest economies — also resulted in tepid demand for gold in the international market in the week," Dharma Sundar Bajracharya, general secretary of Federation of Nepal Gold and Silver Dealers' Association (FeNeGoSiDA), said in a statement.
According to Reuters, global gold prices hit a two-week low on Friday on a stronger dollar, keeping the metal on track to record their first weekly loss since late December.
The price of precious metals in the domestic market is determined by their rates in the international market.
Gold was priced at Rs 55,400 per tola when the market opened for trading on Sunday. The price of the yellow metal rose by Rs 200 a tola to be traded at Rs 55,600 per tola on Monday and edged up by Rs 100 a tola to be priced at Rs 55,700 per tola on Tuesday. However, bullion price reversed course thereafter. Gold price dropped by Rs 400 a tola to Rs 55,300 per tola on Wednesday. On Thursday, the yellow metal was traded at Rs 55,000 a tola, down Rs 300 per tola. On Friday, the bullion price fell by Rs 400 a tola to be traded at Rs 54,600 per tola.
Over the course of six days, the price of the yellow metal dropped by Rs 800 a tola or 1.44 per cent.
Similarly, silver was traded at Rs 800 per tola on Sunday and its price remained the same over the next two days. However, the price of the white metal dropped by five rupees a tola each day for the following three days to be traded at Rs 795 per tola on Wednesday, Rs 790 a tola on Thursday and Rs 785 per tola on Friday.
During the week, the white metal was down 1.87 per cent or Rs 15 a tola.
If the current situation prevails, the price of precious metals will drop further in the coming week, according to FeNeGoSiDA.