Precious metals lose lustre
Kathmandu, August 5
Contrary to the previous week when gold price had remained stable, the price of both precious metals — gold and silver — fell in the trading week between July 30 and August 4.
Gold price had spiked in the international market in the beginning of the week as tensions on Korean peninsula boosted safe-haven demand for the yellow metal and as the dollar hovered around multi-month lows on weak economic data of the United States last week. However, gold prices fell towards the end of the week as the dollar inched up on signs that the US economy was strengthening, which in turn prompted investors to focus on risk assets.
In the domestic market, the Federation of Nepal Gold and Silver Dealers’ Association had fixed rate of gold at Rs 54,800 per tola when market opened on Sunday. The price of yellow metal dipped by Rs 100 a tola to Rs 54,700 per tola on Monday, but recovered loss the very next day by rising Rs 100 a tola to be traded at Rs 54,800 per tola on Tuesday. On Wednesday, bullion price fell by Rs 200 a tola to Rs 54,600 per tola and dropped by Rs 400 a tola to be priced at Rs 54,200 per tola on Thursday. Even as the price of the yellow metal went up by Rs 200 a tola to Rs 54,400 per tola, the earlier fall in price offset the gain.
Consequently, gold price fell by Rs 400 a tola over six trading days of week. The price of the yellow metal stayed the same as in the previous week when it was also Rs 54,400 per tola.
Similarly, FeNeGoSiDA had set the rate of silver at Rs 745 per tola on Sunday. The price of the grey metal seesawed over the next three days — dipping by five rupees a tola to Rs 740 per tola on Monday, inching up by five rupees a tola to Rs 745 per tola on Tuesday and dipping again by five rupees a tola to Rs 740 per tola on Wednesday. Breaking the trend of the past three days, silver remained southbound by dropping Rs 10 a tola to be traded at Rs 730 per tola. Silver rose by five rupees a tola to close the week at Rs 735 per tola — Rs 10 a tola less than the rate at which it was traded on the first day of the week.
Compared to the previous week, however, silver price remained constant as the grey metal had ended the week at Rs 735 per tola back then also.