Price of precious metals soars

Kathmandu, February 17

The price of precious metals surged by over two per cent to more than a year-high level in the trading week between February 11 and 16.

According to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), weakening of US dollar, rise in oil prices, high demand of bullion ahead of Lunar New Year holidays and quickening inflation contributed to the rise of gold price.

FeNeGoSiDA had set the trading rate of gold at Rs 56,800 per tola on Sunday. Bullion price rose by Rs 200 a tola to be traded at Rs 57,000 per tola on Monday and its price remained the same the next day. Bullion price rose by Rs 400 a tola to Rs 57,400 per tola on Wednesday, gained Rs 500 a tola to Rs 57,900 per tola on Thursday and went up by

Rs 100 a tola to Rs 58,000 per tola on Friday.

The last time the precious yellow metal had traded at the current level was back on November 9, 2016, when it was traded at Rs 58,200 a tola. Back then, the US election results had been announced, which showed Donald Trump had defeated Hillary Clinton. The news shocked the markets and investors rushed to pick gold, which is also considered as a safe haven asset.

FeNeGoSiDA had fixed the rate of silver at Rs 735 per tola and its price was unchanged the next day. On Tuesday, silver price went up by five rupees a tola to Rs 740 per tola and was stable on Wednesday. On Thursday, the price of the grey metal went up by Rs 10 a tola to Rs 750 per tola and remained the same the next day.

Meanwhile, according to Reuters, physical gold was sold at a discount in India this week for the first time in three weeks as demand for the metal slumped due to a jump in local rates, while the Lunar New Year holiday capped buying at the end of the week elsewhere in Asia.

“Traders expect demand to be low going forward as a week-long Lunar New Year holiday started on Thursday,” Reuters reported.