Prices of precious metals dip


The prices of precious metals slipped in the trading week between December 6 and 11, with investors’ sentiment mixed in the international markets.

According to the rate list of Federation of Nepal Gold and Silver Dealers’ Association (FeNEGoSiDA), gold was traded at Rs 92,700 per tola on Sunday.

Its price fell by Rs 100 a tola to Rs 92,600 per tola on Monday.

On Tuesday, bullion price surged by Rs 1,500 a tola to Rs 94,100 per tola. The price of the precious yellow metal fell over the next two days — down Rs 700 a tola to Rs 93,400 per tola on Wednesday and down Rs 900 a tola to Rs 92,500 per tola on Thursday. Gold price was unchanged on Friday.

In the international markets, gold prices fell on Monday on overall optimism over this week’s coronavirus vaccine rollout in Britain and as the dollar bounced off a multi-year low. It steadied near a two-week high on Tuesday as confidence over the rollout of a COVID-19 vaccine countered the market impact of a subdued dollar and hopes for more fiscal stimulus.

Gold eased from a two-week high on Wednesday as encouraging COVID-19 vaccine news dimmed its safe-haven appeal, while investors kept a close watch on developments around a US fiscal stimulus deal. The price of precious yellow metal edged lower on Thursday, following a steep sell-off in the previous session, as a breakthrough in long-running US fiscal stimulus negotiations remained elusive.

Gold prices edged higher on Friday, as rising coronavirus cases and dour US jobs data cast doubts over a swift economic recovery, offsetting the pressure from delayed US fiscal stimulus talks.

Meanwhile, retail consumers in India slowed gold purchases this week put off by higher prices, while top consumer China saw a slight pick-up in demand as jewellers stocked up going into year-end, Reuters reported.

As per FeNEGoSiDA, silver was traded at Rs 1,210 per tola on Sunday and its price fell by five rupees a tola to Rs 1,205 per tola on Monday. The price of grey metal surged by Rs 30 a tola to Rs 1,235 per tola on Tuesday.

Silver price fell by Rs 20 a tola to Rs 1,215 per tola on Wednesday and was down Rs 15 a tola to Rs 1,200 per tola on Thursday. Similar to gold, price of grey metal remained steady on Friday.

Market analysts remain bullish on precious metals. “Until you get vaccine widely distributed, gold will still do well, especially with printing presses rolling again. Every time you print more of something, it is worth less. That’s why the appeal for gold and silver.”