Kathmandu, December 24

Driven by currency effects, the price of precious metals dipped in the week between December 18 to 23, although the fall was tepid compared to past week.

Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.

“There is a risk that the prices of gold and silver might fall further in the short term as the Fed hikes rates more aggressively in response to some of Trump’s more inflationary policies,” Reuters has quoted Capital Economics as saying in a weekly note.

Moreover, buying in India remained subdued this week despite a sharp fall in prices as a severe cash crunch and holidays kept purchasers away, while premiums in China fell from near three-year highs witnessed in prior week.

In the domestic market, gold was being traded at Rs 51,900 per tola when the market opened on Sunday. The price of the yellow metal edged up by Rs 100 a tola to Rs 52,000 per tola on Monday. Its price remained the same over the next two days — Tuesday and Wednesday. On  Thursday, however, bullion price dropped by Rs 200 a tola to be priced at Rs 51,800 per tola and was traded at the same level on Friday.

On the other hand, the price of silver bobbed throughout the week.

The white metal was being traded at Rs 765 per tola on Sunday. Silver price dropped by five rupees a tola each day over the next two days to be traded at Rs 760 per tola on Monday and Rs 755 a tola on Tuesday. One Wednesday, bullion price went up by five rupees a tola to be traded at Rs 760 per tola, but dipped by five rupees per tola again on Thursday to be traded at Rs 755 a tola. On Friday, the white metal traded at the same level as the previous day, that is, Rs 755 per tola.