Precious metals lose lustre as dollar shines
Kathmandu, December 1
Due to the US dollar continuously gaining strength in the international market, the price of gold and silver declined in the domestic market in the trading week between November 25 and 30.
As per the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was traded at Rs 58,000 per tola on Sunday. On Monday, the price of gold dropped by Rs 300 a tola to Rs 57,700 per tola. However, gold price reversed course the next day and increased by Rs 300 a tola to Rs 58,000 per tola. On Wednesday, however, it again went down
by Rs 400 a tola to Rs 57,600 per tola. The price of the precious yellow metal continued its descent on Thursday, descending by Rs 100 per tola to Rs 57,500 a tola. On Friday too, it dropped by Rs 300 per tola to close the week at Rs 57,200 a tola.
Meanwhile, silver was traded at Rs 710 a tola on Sunday. It dropped by five rupees per tola to Rs 705 a tola on Monday and remained stable the next day. Silver price again dipped by five rupees per tola to Rs 700 a tola on Wednesday. However, on Thursday the price of the grey metal increased by five rupees per tola to Rs 705 a tola. It again went down on Friday by five rupees per tola to close the week at Rs 700 a tola.
The week-on-week review shows that gold price went down by Rs 900 a tola in the domestic market whereas that of silver dropped by Rs 15 a tola.
Physical gold demand in the world’s second biggest bullion consumer India got a fillip this week from a slide in Indian rates due to gains in the rupee, while buying was steady in other top Asian hubs, according to Reuters.
“The appreciating (Indian) rupee has brought down prices. At this price level, jewellers and retail buyers are quite comfortable in making purchases,” said Ashok Jain, proprietor of Mumbai-based wholesaler Chenaji Narsinghji.
Indian gold prices were trading near their lowest in about three months as an appreciation in the rupee made overseas buying cheaper. After decent sales during festival, jewellers have been replenishing inventories for the wedding season, a Mumbai-based dealer with a private bank said, Reuters reported.
Gold is considered an essential part of weddings in India, when adorning and giving gold as a gift are common practices.
Dealers in India were charging a premium of up to $2 an ounce over official domestic prices, unchanged from the last week. The domestic price includes a 10 per cent import tax.
Benchmark spot gold edged lower on Friday, ahead of the G-20 meeting in Argentina this weekend, where US and Chinese leaders are scheduled to discuss trade matters after months of tensions, but prices were on track to notch a second straight month of gains.
According to Reuters, in China, premiums of $6-$7 an ounce were charged over the benchmark, versus $4-$6 last week, while in Hong Kong, premiums were quoted at $0.90-$1.50, against the previous week’s $0.70-$1.50 range, with steady demand in the region.