Price of precious metals dips slightly

Kathmandu, Sept 17

The price of precious metals dipped marginally in the week of September 11 to 16, as investors looking to book profit increased the selling pressure in the international market, even though the near-term chances of the US central bank raising interest rates have faded.

“Things are largely on hold ahead of the Fed and Bank of Japan meetings next week,” Reuters reported. The US and Japanese central banks are both holding monetary policy meetings on September 20 to 21.

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

The price of precious metals in the domestic market is governed by their rates in the international market.

Gold was priced at Rs 58,700 per tola when the market opened on Sunday and its price remained the same on Monday. The bullion price edged up by Rs 100 a tola to be traded at Rs 58,800 per tola on Tuesday. On Wednesday, however, the precious yellow metal slumped by Rs 300 a tola to be traded at Rs 58,500 per tola. Its price remained the same on Thursday before dropping by Rs 300 per tola again on Friday to be traded at Rs 58,200 a tola. In the week, the price of the precious yellow metal fell by Rs 500 or 0.85 per cent.

Meanwhile, silver was traded at Rs 865 per tola on Sunday and its price fell by five rupees to be traded at Rs 860 a tola on Monday. On Tuesday, the price of the white metal went up by Rs 10 a tola to be traded at Rs 870 per tola. However, it shed the previous day’s gain the very next day as silver price dropped by Rs 10 per tola to be traded at Rs 860 a tola. The white metal was traded at the same rate on Thursday and Friday. During the week, silver price fell by five rupees or 0.58 per cent.

The price of precious metals is likely to remain mostly stable next week as well, according to the Federation of Nepal Gold and Silver Dealers’ Association.