Price of precious metals rises

KATHMANDU, JANUARY 9

Despite staging a sharp U-turn and closing the week with heavy losses, the bullish momentum in the first half of the week propped up the price of precious metals in the trading week between January 3 and 8.

According to the rate list of the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was traded at Rs 94,500 per tola on Sunday.

Its price went up by Rs 800 a tola to Rs 95,300 per tola on Monday, surged by Rs 1,100 a tola to Rs 96,400 per tola on Tuesday, and rose by Rs 300 a tola to Rs 96,700 per tola on Wednesday.

On Thursday, however, bullion price slumped by Rs 1,300 a tola to Rs 95,400 per tola and fell by Rs 100 a tola on Friday to close the trading week at Rs 95,300 per tola.

The price of the precious yellow metal went up by 0.85 per cent or Rs 800 a tola during the review week.

In the international markets, gold began the new year by climbing two per cent on Monday, as the dollar slid to 2018 lows and prospects of tougher restrictions to combat a new variant of the coronavirus kept safe-haven bullion in demand.

Gold hit a two-month high on Tuesday, buoyed by a weaker dollar and growing concerns about COVID-19 as investors awaited outcome of US Senate runoff elections in Georgia that could impact prospects for more fiscal stimulus.

Bullion price tumbled on Wednesday, hit by rebound in dollar as US Treasury yields surged, with investors betting on Democrat win in US Senate.

Gold prices eased on Thursday as a surge in US Treasury yields and firm dollar dampened demand for the bullion, although losses were limited by hopes for more fiscal stimulus after Democrats won control of the US Senate. The precious yellow metal accelerated its slide on Friday, slumping around three per cent and dragging down other precious metals as a jump in US Treasury yields hammered bullion’s safe-haven appeal.

As per FeNeGoSiDA, silver was priced at Rs 1,300 per tola on Sunday. Its price surged by Rs 25 a tola to Rs 1,325 per tola on Monday, went up by Rs 10 a tola to Rs 1,335 per tola on Tuesday and rose by five rupees a tola to Rs 1,340 per tola on Wednesday. Silver price, however, fell by Rs 10 a tola to Rs 1,330 per tola on Thursday and was unchanged on Friday.

The price of the grey metal jumped by 2.31 per cent or Rs 30 a tola over the six days of the review period.