Price of precious metals increases

Kathmandu, June 11

Gold price increased by Rs 600 or 1.08 per cent and silver price rose by Rs 30 or 3.97 per cent per tola, over the week — from June 5 to 10.

Bullion price started to rally in the international market from mid-week following the US Federal Reserve Chair Janet Yellen’s speech on June 6 indicating the Fed will rethink on interest rate plans. Earlier, bullion price had started declining in the international market in assumption of interest rate hike during US Federal Reserve’s June 14 to 15 policy meeting.

However, the weakest monthly job growth in the US since 2010 revealed last week and Yellen’s recent speech has strongly backed bullion market rally.

Moreover, as the United Kingdom will hold a referendum on June 23 on whether to stay in or leave European Union (EU), investors have started parking their investment in the bullion market as safe haven.

The prices of the precious metals in the domestic market are governed by the rates set in the international market. Gold price recouped to the level it was three weeks ago, according to the Federation of Nepal Gold and Silver Dealers’ Association.

The market opened on Sunday with gold price fixed at Rs 55,300 per tola. The price of precious yellow metal, however, dropped marginally by Rs 100 a tola on Monday and was traded at Rs 55,200 per tola. Its price remained constant till Wednesday.

Bullion price increased by Rs 400 a tola on Thursday to be traded at Rs 55,600 per tola and rose by Rs 300 a tola on Friday to settle at Rs 55,900 per tola for the week.

Likewise, the price of silver also went up by nearly four per cent during the six trading days of the week.

The market opened on Sunday with silver price fixed at Rs 755 per tola and its price remained the same until Wednesday.

The price of the white metal shot up by Rs 25 per tola in a single day on Thursday, with the market price fixed at Rs 780 a tola.

Silver price again increased by five rupees a tola to be traded at Rs 785 per tola on Friday — the last trading day of the week.