Price of precious metals declines

Kathmandu, November 17

Due to both the US dollar and the pound sterling gaining strength in the international market, the price of gold and silver decreased in the trading week between November 11 and 16.

As per the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was traded at Rs 59,000 per tola on Sunday. On Monday, gold price dropped by Rs 100 a tola to Rs 58,900 per tola. Similarly, it fell by Rs 400 per tola to Rs 58,500 a tola the next day. On Wednesday too gold price dipped by Rs 300 a tola to Rs 58,200 per tola. However, the price of the precious yellow metal increased on Thursday by Rs 200 per tola to Rs 58,400 a tola. The price of bullion remained
stable on Friday to close the week at Rs 58,400 per tola.

Meanwhile, silver was traded at Rs 730 a tola on Sunday. Its price decreased by five rupees a tola to Rs 725 per tola on Monday. On Tuesday too the price of silver dropped by five rupees a tola to Rs 720 per tola. Similarly, the price of the grey metal descended by five rupees a tola to Rs 715 per tola the next day. However, on Thursday and Friday, the price of silver remained stable to close the week at Rs 715 per tola.

Gold is trading at a premium in India for the first time in more than two months on robust demand following a busy festival week, while a dip in global prices earlier this week helped bullion’s appeal in some Asian hubs, as per Reuters.

Dealers in India, the world’s second biggest gold consumer after China, were charging a premium — the first time since early September — of up to $3 an ounce over official domestic prices this week.

“After poor sales during Dusherra, jewellers were expecting weak demand even during Diwali. But surprisingly, demand was better than expected.”

According to Reuters, local gold prices were trading near their lowest level in six weeks, as the rupee gained versus the US dollar, translating into cheaper rates in theinternational market. India’s gold imports in October fell 43 per cent from a year ago to $1.68 billion, pointing to lower supplies.

Meanwhile, global benchmark spot gold prices fell to a one-month low earlier in the week at $1,195.90 an ounce, but have since recovered by about 1.7 per cent to above the $1,215 mark, on track for a weekly gain.

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