Price of precious metals rises as dollar weakens
Kathmandu, December 8
Due to the weakening US dollar in the international market the price of gold and silver in the domestic market increased in the trading week between December 2 and 7.
As per the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was traded at Rs 57,200 per tola on Sunday. On Monday, the price of gold went up by Rs 200 a tola to Rs 57,400 per tola. On Tuesday too, the price of the
bullion surged by Rs 900 a tola to Rs 58,300 per tola. Continuing with its upward trend, the price of the precious yellow metal increased by Rs 100 a tola to Rs 58,400 per tola on Wednesday and by Rs 300 per tola to Rs 58,700 a tola on Thursday. However, gold price decreased by Rs 200 per tola on Friday to close the week at Rs 58,500 a tola.
Meanwhile, silver was traded at Rs 700 a tola on Sunday and remained stable the next day. It rose by Rs 10 per tola to Rs 710 a tola on Tuesday and again increased by five rupees per tola to Rs 715 a tola on Wednesday. However, on Thursday and Friday the price of the grey metal remained the same to close the week at Rs 715 a tola.
The week-on-week review shows that gold price went up by Rs 1,300 a tola in the domestic market whereas that of silver increased by Rs 15 per tola.
Gold hit a five-month peak on Friday as the dollar slid following weaker-than-expected US jobs data, which added to expectations the US Federal Reserve may go slow on interest rate hikes next year, Reuters reported.
Spot gold gained 0.7 per cent to $1,245.74 per ounce, having hit $1,246.72 per ounce earlier, its highest since July 13. With a rise of nearly two per cent this week, gold looked set to post its best gain since the week of March 23. US gold futures were also 0.6 per cent higher at $1,251.30 per ounce.
“The non-farm payroll data came out lower than expected. It is a negative pick that is causing people to hedge a little bit more in gold and any shorts are probably covering and adding few longs to the market,” said Miguel Perez-Santalla, vice president of Heraeus Metal Management in New York.
According to Reuters, the dollar eased against a basket of currencies on Friday after data showed US job growth slowed in November and monthly wages increased less than expected, suggesting some moderation in economic activity.