Price of precious metals rises
Kathmandu, May 26
The price of precious metals rose in the trading week between May 20 and 25 as the dollar strength faced after US President Donald Trump called off a summit with North Korea, stoking political tensions.
Trump cancelled the meeting with Kim Jong Un, planned for June 12, even after North Korea followed through on a pledge to blow up tunnels at its nuclear test site. The cancellation prompted investors to seek a safe store of value.
Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) had fixed the price of gold at Rs 58,700 per tola on Sunday. Its price dipped by Rs 100 a tola to be traded at Rs 58,600 per tola on Monday and remained same the next day. Starting Wednesday, however, the price of yellow metal went uphill. Bullion was traded at Rs 58,900 a tola on Wednesday, up Rs 300 per tola. It gained Rs 100 a tola to be priced at Rs 59,000 per tola on Thursday and went up by Rs 200 a tola on Friday to close the week at Rs 59,200 per tola.
FeNeGoSiDA had set the trading rate of silver at Rs 770 a tola on Sunday and its price was stable for the next two days. The price of grey metal rose by five rupees per tola to Rs 775 a tola on Wednesday. On Thursday, its price was unchanged before rising by five rupees per tola again on Friday to close the week at Rs 780 a tola.
Reuters reported that gold prices steadied on Friday after Donald Trump said a meeting with North Korea’s leader could still go ahead, easing concerns that had driven gold above $1,300 an ounce the previous session.
Gold tends to move higher when the US dollar weakens because this makes dollar-priced bullion cheaper for buyers with other currencies.
But after losing ground on Thursday the dollar strengthened to a new 2018 high, helped by a North Korean statement that it was open to resolving issues with the United States, comments that were welcomed by Trump, as per Reuters.