Price of precious metals drops
Kathmandu, December 2
Physical gold demand was steady in most Asian centres in the week between November 26 and December 1 as buyers hoped for further price dips amid growing appetite for riskier investments, while a slide in local rates failed to restore bullion’s allure in India.
In China, gold was sold at a premium of $5 to $8 an ounce over benchmark rates, mostly unchanged from last week, Reuters reported.
“We continue to see a growing trend of selling gold in order to use the proceeds for investment in cryptocurrencies, mostly Bitcoin, Ethereum and Monero,” Joshua Rotbart, managing partner of J Rotbart & Co in Hong Kong, told Reuters.
Bitcoin hit an all-time high of $11,395 on Wednesday before sliding as low as $9,000 in volatile trade on Thursday. In India, the world’s second biggest gold consumer after China, a correction in local prices to lowest level in over three months failed to spur fresh demand as jewellers postponed purchases, expecting a bigger dip.
Industry officials estimate India’s gold imports in the last quarter of 2017 could drop by a fourth from a year ago.
In the local market, Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) had set the rate for gold at Rs 56,000 per tola on Sunday. Bullion price rose by Rs 100 a tola to Rs 56,100 per tola on Monday and remained steady the next day. From Wednesday, however, the price of the yellow metal started to slide. It was down Rs 100 a tola to Rs 56,000 per tola on Wednesday, dropped by Rs 300 a tola to be traded at Rs 55,700 per tola on Thursday and fell by another Rs 300 a tola on Friday to close the week at Rs 55,400 per tola.
Compared to the first trading day of the week, gold price dropped by Rs 600 a tola, but-week-on week, bullion price slumped by Rs 700 per tola.
Similarly, FeNeGoSiDA had fixed rate for silver at Rs 760 a tola on Sunday and its price rose by five rupees per tola to be traded at Rs 765 a tola on Monday. From Tuesday, however, the rate of silver started to drop. It was down five rupees per tola each day on Tuesday and Wednesday to be priced at Rs 760 a tola and Rs 755 per tola, respectively. On Thursday, silver price fell by Rs 10 a tola to be traded at Rs 745 per tola and slipped by five rupees a tola on Friday to rest at Rs 740 per tola for the week.
Silver price was down Rs 20a tola at the end of the week against its trading price on Sunday. The loss againstits closing price in the previous week, however, was Rs 25 per tola.