Price of precious metals increases
Kathmandu, July 22
After holding steady in the previous week, the price of precious metals rose in the trading week between July 16 and 21 as the dollar tumbled.
A near two per cent rise in the euro this week pinned the dollar to multi-month lows against a trade-weighted basket of its rivals, according to media reports.
“What we’re seeing right now is also the overhang from political risks in the United States,” Stephen Innes, head of trading for Asia Pacific at OANDA in Singapore, told Reuters.
The Republican Party’s repeated failures to overhaul the healthcare system and multiple congressional and federal investigations into President Donald Trump’s campaign ties to Russia have cast a shadow over his first six months in office.
“The appeal of gold as an insurance asset is greater today than it was at the beginning of the year,” explained Dominic Schnider at UBS Wealth Management in Hong Kong, as per BullionVault.
Gold is often perceived as an insurance against economic and financial concerns.
In the domestic market, the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) had fixed the rate of gold at Rs 53,500 per tola when the market opened on Sunday and its price remained the same the next day.
On Tuesday, bullion price went up by Rs 200 a tola to Rs 53,700 per tola and edged up by Rs 100 a tola to Rs 53,800 per tola on Wednesday. On Thursday, however, it reversed the gain of the previous day, dipping by Rs 100 a tola to be traded at Rs 53,700 per tola.
On Friday, the yellow metal rose by Rs 300 a tola to Rs 54,000 per tola — nearly a three-week high.
Similarly, FeNeGoSiDA had set the price of silver at Rs 715 a tola on Sunday. The price of the white metal went up by five rupees per tola each day for the next two days to be traded at Rs 720 a tola on Monday and Rs 725 per tola on Tuesday. Its price remained constant over the next two days before inching up again by five rupees a tola to close the week at Rs 730 per tola — a two-week high.