Precious metals lose lustre because of economic fallout
Kathmandu, March 21
The widening economic fallout in the international market has caused the price of bullion to fall in the domestic market during the trading week between March 15 and 20.
According to the Federation of Nepal Gold and Silver Dealers’ Association (FeNe- GoSiDA), the precious metal was traded at Rs 77,000 per tola on Sunday and went up by Rs 500 per tola on Monday to be traded at Rs 77,500 a tola. However, on Tuesday gold price fell by Rs 2,000 a tola to settle at Rs 75,500 per tola.
On Wednesday, however, price of the bullion rose by Rs 1,000 per tola to reach Rs 76,500 a tola in the domestic market. On Thursday, price of the precious yellow metal declined by Rs 1,500 a tola to be traded at Rs 75,000 per tola. However, on Friday gold price went up by Rs 500 a tola to close the trading week at Rs 75,500 a tola in the domestic market.
Gold price dropped by Rs 3,000 per tola during the review period compared to the closing rate of Rs 78,500 a tola in the last trading week.
Meanwhile, silver price also declined in the review week in the domestic market.
According to FeNeGoSi- DA, silver was traded at Rs 790 per tola on Sunday and remained constant on Monday.
Price of the grey metal fell by Rs 80 per tola on Tuesday to settle at Rs 710 a tola and it remained constant the next day. On Thursday, silver price dropped by Rs 30 per tola to reach Rs 680 a tola. However, on Friday silver price went up by Rs 20 per tola to close the trading week at Rs 700 a tola.
Compared to the closing rate of Rs 820 per tola in the previous week, silver price descended by Rs 120 a tola in the review week.
The federation has stated that the liquidity crunch in the international market has compelled investors to sell bullion. Hence, bullion price has declined in the market.
Reuters has reported that gold prices rose on Friday after a fall in the previous session but the metal was on track to post its second weekly drop due to a rush for cash amid the widening economic fallout from the coronavirus outbreak.
Physical demand for gold jumped in Singapore as buyers took advantage of a recent slide in prices after investors dumped the metal to raise cash, while discounts in India narrowed despite closures due to the virus outbreak, Reuters reported.