Precious metals relatively stable
Kathmandu, November 18
Precious metals remained relatively stable in the trading week between November 12 and 17.
In the international market, gold rose on Friday as the dollar softened on uncertainty about the progress of what would be the biggest overhaul of US taxes since the 1980s. The US House of Representatives approved on Thursday a package of tax cuts, while a Senate panel advanced its version of the legislation that has President Donald Trump’s backing.
This plan, as per commodity analysts, is very destructive for middle-class and could spark some hard-asset buying in metals.
Meanwhile, gold prices in India traded at a discount as key wedding season failed to spur fresh demand, while high prices curbed appetite for the precious metal in major Asian centres except China. Gold is considered an essential part of weddings in India, world’s second-biggest consumer after China.
Reuters reported Carsten Menke, a Julius Baer analyst, as saying that the dollar should strengthen as the US Federal Reserve continues to raise rates.
“Volatility in gold market is down towards record lows with most of the short-term swings caused by shifting expectations about the outlook for US monetary policy,” he said in a note.
In the local market, Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) had fixed the price of gold at Rs 55,900 per tola when the market opened for trading on Sunday. The price of the yellow metal rose by Rs 100 a tola to Rs 56,000 per tola on Monday and remained unchanged the next day. On Wednesday, bullion price went up again by Rs 200 a tola to be traded at Rs 56,200 per tola. The yellow metal, however annulled the earlier gains over the next two days — dropping by Rs 100 a tola to Rs 56,100 per tola on Thursday and down Rs 200 a tola to Rs 55,900 per tola on Friday.
Meanwhile, FeNeGoSiDA had set the trading rate of silver at Rs 760 a tola on Sunday. Its price edged up by five rupees per tola to Rs 765 a tola on Monday and remained the same the following day. The price of silver edged up by five rupees per tola again on Wednesday to be traded at Rs 770 a tola. It dipped by five rupees per tola on Thursday to be traded at Rs 765 a tola and was stable the next day.