Kathmandu, February 25
After dipping in the start of the week, the price of precious metals rose towards end of the week — between February 19 and 24 — owing to weakening of the US dollar.In the international market, gold hit its highest in three-and-a-half months on Friday as dollar hit a one-week low after new US finance chief poured cold water on ‘Trumpflation trade’ that had boosted the greenback this year, as per Reuters.
Tempering gains in bullion, a poll on Friday suggested French presidential candidate Emmanuel Macron would beat far-right leader Marine Le Pen, who has promised a referendum on European Union membership.
Still, the precious metal was supported by tempered expectations of a US rate hike in March after minutes from the Federal Reserve’s latest policy meeting struck a less hawkish note than expected, Reuters reported.
Gold is highly sensitive to rising US interest rates, which increase opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced. The price of precious metals is governed by their rates in the international market.
Gold was priced at Rs 55,700 per tola when the market opened for trading on Sunday. Its price dropped by Rs 100 a tola each over the next two days to be priced at Rs 55,600 per tola on Monday and Rs 55,500 a tola on Tuesday. On Wednesday, price of yellow metal remained same. On Thursday, bullion price went up by Rs 100 per tola to Rs 55,600 a tola and rose by Rs 400 per tola to Rs 56,000 a tola on Friday. Over six days, gold price rose by Rs 300 per tola and week-on-week its price rose by Rs 200 a tola.
Meanwhile, silver was traded at Rs 825 per tola on Sunday. Its price dipped by five rupees a tola to be fixed at Rs 820 per tola. The white metal was traded at the same rate over the next three days. On Friday, however, silver price went up by Rs 10 a tola to Rs 830 per tola. Compared to Sunday and previous Friday, silver price went up by five rupees a tola.
A version of this article appears in print on February 26, 2017 of The Himalayan Times.