Price of precious metals declines by over 1pc
Kathmandu, May 19
The price of precious metals slipped by over one per cent in the trading week between May 13 and 18.
The improvement in treasury of western nations weighed on the gold price, according to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA).
“Strengthening of the dollar coupled with news of US central bank hiking interest rates thrice this year also caused the bullion price to fall,” the federation said in a statement.
As per the price rate published by FeNeGoSiDA, gold was priced at Rs 59,300 per tola on Sunday. Its price dipped by Rs 100 a tola to be traded at Rs 59,200 per tola on Monday and remained same the next day.
On Wednesday, bullion price fell by Rs 500 a tola to Rs 58,700 per tola.
The price of the precious yellow metal fell by Rs 300 a tola to Rs 58,400 per tola on Thursday and was unchanged on Friday, the last trading day of the week.
FeNeGoSiDA had fixed the rate of silver at Rs 775 a tola and its price was stable the next day. Over the next two days, however, the grey metal dipped by five rupees per tola each day to be traded at Rs 770 a tola on Tuesday and Rs 765 per tola on Wednesday. Silver was traded at the same rate for the rest of the week.
In neighbouring India, gold discounts widened due to sluggish demand amid high local rates, Reuters reported
In the overseas market, gold prices have corrected but in the local market prices are still elevated due to a depreciating Indian rupee, Ashok Jain, proprietor of Mumbai-based wholesaler Chenaji Narsinghji, told the news agency.
The Indian rupee has fallen more than six per cent so far in 2018, having plunged to its lowest in 16 months this week.
In top consumer China, demand for physical gold improved, with premiums of $8 to $9 an ounce being charged over the benchmark price, versus $6 to $8 last week.