Prices of precious metals rebound strongly
KATHMANDU, DECEMBER 5
The price of precious metals rose significantly in the trading week of November 29 and December 4.
According to Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was traded at Rs 90,700 per tola on Sunday.
Its price fell by Rs 700 a tola to Rs 90,000 per tola on Monday. Bullion price was northbound for the remainder of the week. It went up by Rs 500 a tola each day for the next two days, to be priced at Rs 90,500 per tola on Tuesday and Rs 91,000 a tola on Wednesday. Gold price surged by a whopping Rs 1,600 per tola to be traded at Rs 92,600 a tola on Thursday and went up by another Rs 300 per tola on Friday to close the trading week at Rs 92,900 a tola.
The precious yellow metal surged by 2.42 per cent or 2,200 per tola over the review week.
According to Reuters, gold demand moderated this week in India after local prices recovered from a fivemonth trough, while buyers in other major hubs were also put off by a slight uptick in prices. Indian dealers were charging a premium of $3.5 an ounce over official domestic prices this week, inclusive of 12.5 per cent import and three per cent sales levies, down from last week’s premium of $5.
Neighbouring Bangladesh cut prices for all categories of gold for the second time in little over a week due to weak demand, Jewellers’ Association said. The new rates, with the best quality gold priced at 72,667 taka ($863.23) per Bhori, or 11.664 grams, came into effect from Wednesday.
In China, gold was sold at a discount of $20 an ounce to the international spot price versus last week’s $17 to $20. In Hong Kong, the metal was sold at a premium of $0.50 to $1.50.
Traders said a slump in international prices earlier this week triggered some interest which then turned lacklustre.
Benchmark spot gold prices are on track for a rise of nearly three per cent this week, having fallen to a five month low of $1,764.29 per ounce on Monday.
Singapore premiums were unchanged from last week at $1.20 an ounce.
In Japan gold was sold between flat and a premium of 50 cents to benchmark spot rates, Reuters reported.
Not only is the gold market seeing strong technical support for higher prices, but some analysts also note that the precious metal also continues to enjoy strong fundamental support.
Some analysts noted that November’s disappointing employment report is further evidence that the US government and Federal Reserve will have to unleash more stimulus to revive the beleaguered economy. On Friday, the US Bureau of Labour Statistics said 245,000 jobs were created last month; however, economists were expecting to see job gains of around 480,000.
Meanwhile, silver was traded at Rs 1,150 a tola on Sunday, as per the rate list of FeNeGoSiDA. Its price slumped by Rs 30 per tola to be priced at Rs 1,120 a tola on Monday. Similar to gold, the price of grey metal rose for the rest of the week. It was up Rs 35 per tola to Rs 1,155 a tola on Tuesday; up Rs 30 per tola to Rs 1,185 a tola on Wednesday; up Rs 20 per tola to Rs 1,205 a tola on Thursday and up five rupees per tola on Friday to close the trading week at Rs 1,210 a tola.
The price of grey metal soared by 5.22 per cent or Rs 60 per tola during the review week.