Price of precious metals edges up

Kathmandu, January 27

Price of precious metals edged up in the week between January 21 and 26, with the demand for physical gold improving slightly in most Asian hubs despite rising prices, as buyers stocked up on expectations of a further rally in the yellow metal.

Investors also flocked towards precious metals in anticipation of a further dip in the US dollar. A weaker dollar makes bullion cheaper for holders of other currencies.

Additionally, some people who invested in cryptocurrencies are also moving into precious metals, since the digital currencies have not been doing as well in the last few weeks.

Dealers in India were offering a discount of up to $3 an ounce this week, down from $5 last week. Many jewellers were still postponing purchases, expecting up to a four per cent reduction in the import duty in the budget on February 1, a Mumbai-based dealer at a private bank told Reuters.

In top consumer China, premiums eased to $7 per ounce from about $8 last week, while in Hong Kong, premiums ranged between 60 cents and $1.20, compared with 50 cents previously.

Gold bulls are likely to have their patience rewarded in what is tipped to be the strongest year since 2013, a Reuters survey showed.

In the local market, Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) had set the rate for gold at Rs 56,800 per tola when the market opened for trading on Sunday. Bullion price rose by Rs 200 a tola to be traded at Rs 57,000 per tola on Monday and its price remained unchanged the next day. The price of precious yellow metal rose by Rs 200 a tola to Rs 57,200 per tola on Wednesday and surged by Rs 600 a tola to be priced at Rs 57,800 per tola on Thursday. On Friday, however, gold price dropped by Rs 400 a tola to close the week at Rs 57,400 per tola.

Similarly, FeNeGoSiDA had fixed the rate of silver at Rs 750 a tola on Sunday and its price was stable for the next three days. On Thursday, the grey metal went up by Rs 15 per tola to be priced at Rs 765 a tola. On Friday, however, silver price dipped by five rupees per tola to close the week at Rs 760 a tola.