Precious metals witness price rise

Kathmandu, December 29

Due to the Indian currency weakening against the US dollar in the international market the price of gold and silver in the domestic market increased in the trading week between December 23 and 28.

As per the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was traded at Rs 58,800 per tola on Sunday. On Monday, the price of gold went up by Rs 400 a tola to Rs 59,200 per tola. It again ascended on Tuesday by Rs 200 a tola to Rs 59,400 per tola and remained stable the next day. However, price of the bullion rose by Rs 100 a tola to Rs 59,500 per tola on Thursday. The price of the precious yellow metal again increased by Rs 200 a tola on Friday to close the week at Rs 59,700 per tola.

Meanwhile, silver was traded at Rs 720 per tola on Sunday and remained stable in the next two days. On Wednesday, however, silver price increased by five rupees a tola to Rs 725 per tola. The price of the grey metal again edged up by Rs 10 a tola on Thursday to Rs 735 per tola. On Friday too, its price rose by Rs 10 a tola to close the week at Rs 745 a tola.

The week-on-week review shows that gold price went up by Rs 900 a tola in the domestic market, while that of silver

increased by Rs 25 a tola.

In the international market, gold prices held near six-month highs hit earlier on Friday, helped by a softer dollar, concerns over slowing economic growth and wild swings in equities, putting bullion on track for a second straight week of gains, Reuters reported.

Spot gold was up 0.3 per cent at $1,279.17 per ounce as of Friday and up 1.8 per cent so far this week. Earlier it rose to $1,282.09, the highest level since June 19. US gold futures settled up 0.1 per cent to $1,283 per ounce.

“A weaker US dollar is fuelling higher gold prices and the volatility in the stock markets is worrying people about the prospects in 2019, which is also moving people to gold,” said Walter Pehowich, executive vice president of investment services at Dillon Gage Metals. “But prices are not able to extend gains as there is less liquidity in the markets and not many people want to put positions ahead of the long weekend.”

As per Reuters, dollar index, a gauge of the US currency’s value against six major peers, fell 0.1 per cent, adding to gold’s appeal by making it cheaper for holders of other currencies.

Financial markets are expecting US growth to slow next year due to rising interest rates. On Thursday, a measure of US

consumer confidence posted its sharpest decline in more than three years in December, rattling already nervous investors, as per Reuters.