Kathmandu, September 9

Gold price surged in the week between September 3 and 8 as the dollar fell to its weakest level since 2015, and tension between North Korea and the United States intensified further. Silver also rose backed by increased off-take by industrial units and coin-makers.

Bullion traders said sentiment got a boost after gold rallied to one-year high in global market as the dollar fell to its weakest level since 2015 in the backdrop of warnings that Hurricane Irma could have devastating impact on the US amid weaker-than-expected jobs data.

Besides, simmering tension between North Korea and the US added to the uptrend.

In Asia, the demand for physical gold could pick up in the coming weeks as India’s festival season drives interest in the metal, after high prices kept buyers at bay again this week. Bullion imports in India, the second biggest consumer of gold, nearly tripled in August from a year ago as a recent tax change that allowed importers to ship it from South

Korea without paying customs duty saw some traders purchasing heavily from the country. The observance of ‘Shradh’, considered an inauspicious period when Indians pay homage to their ancestors, was also weighing on demand, Reuters quoted a Mumbai-based dealer as saying.

“Demand will get a boost from the upcoming festival season, with Dusshera in late September and buying is likely to peak during Diwali and Dhanteras next month.”

In top consumer China, premiums were being offered in the $3 to $5 range, the same as last week.

In the local market, Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) had set the rate of gold at Rs 56,800 per tola. The price of the precious yellow metal went up for three consecutive days — by Rs 200 a tola to Rs 57,000 per tola on Monday, by Rs 300 a tola to Rs 57,300 per tola on Tuesday and by Rs 200 a tola to Rs 57,500 per tola on Wednesday. Bullion price fell by Rs 300 a tola to be traded at Rs 57,200 per tola on Thursday, but more than recovered the loss the very next day by surging Rs 600 a tola to rest at Rs 57,800 per tola for the week. Compared to the previous week’s closing rate of Rs 56,500 a tola, gold price surged by Rs 1,300 per tola or 2.3 per cent in review period.

Similarly, FeNeGoSiDA had set the rate of silver at Rs 780 a tola on Sunday. Its price went up by five rupees per tola each day for the next two days to be traded at Rs 785 a tola on Monday and Rs 790 per tola on Tuesday. The price of grey metal remained unchanged on Wednesday before dipping by five rupees a tola to be traded at Rs 785 per tola on Thursday. On Friday, silver price rose by Rs 10 a tola to close the week at Rs 795 per tola — Rs 25 a tola or 3.25 per cent higher than its closing rate of Rs 770 per tola in the previous week.