Kathmandu, March 4

The price of precious metals dropped in the week of February 26 to March 3 as several US central bank members signalled a rise at next rate-setting meeting on March 14 to 15 of the committee.

Higher rates can diminish demand for assets like gold which don’t offer a yield. Gold demand in Asia was tepid this week with investors delaying fresh purchases anticipating a further drop in local prices, Reuters reported.

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

Gold was priced at Rs 56,300 per tola when the market opened on Sunday. Its price dropped by Rs 100 a tola to Rs 56,200 per tola on Monday and remained constant on Tuesday. On Wednesday, bullion price dropped by Rs 400 a tola to Rs 55,800 per tola. On Thursday, the yellow metal edged up by Rs 100 a tola to Rs 55,900 per tola. On Friday, however, gold price dropped by Rs 500 a tola to Rs 55,400 per tola.

Over the six days of the week, bullion price fell by Rs 900 a tola. When compared to the previous Friday, when gold was priced at Rs 56,000 per tola, the yellow metal fell by Rs 600 a tola.

Meanwhile, silver was traded at Rs 835 per tola on Sunday and its price remained same over the next four days. On Friday, however, the price of the white metal dropped by Rs 20 a tola to Rs 815 per tola. Compared to the previous Friday, when silver was traded at Rs 830 a tola, the white metal dropped by Rs 15 per tola.