KATHMANDU, JANUARY 16
The price action of precious metals in the trading week of January 10 to 15 suggests investor indecision and impending volatility in the international markets.
According to the rate list of the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was priced at Rs 93,000 per tola on Sunday. Its price fell by Rs 800 a tola to Rs 92,200 per tola on Monday. Bullion nearly recovered the loss over the next two days, by rising Rs 600 a tola to Rs 92,800 per tola on Tuesday and edging up by Rs 100 a tola to Rs 92,900 per tola on Wednesday. On Thursday, the price of the precious yellow metal slumped by Rs 800 a tola to Rs 92,100 per tola, before rising by Rs 400 a tola on Friday to close the trading week at Rs 92,500 per tola.
Gold price fell by 0.54 per cent or Rs 500 a tola during the review week.
In the international markets, gold eased on Monday, clamped down by a firm dollar and a rise in US Treasury yields on hopes of more fiscal stimulus.
Its price edged higher in a choppy trading on Tuesday as the US dollar and Treasury yields eased, while prospects of higher inflation driven by more US fiscal stimulus provided further support to the metal.
Bullion price held steady on Wednesday, underpinned by data showing a rise in consumer prices in the United States and expectations that more fiscal stimulus from a Joe Biden administration could trigger higher inflation.
Gold price edged lower on Thursday as the dollar steadied and US Treasury yields held near 10-month highs, with markets waiting for Biden to reveal details of his stimulus plan. It then ticked up on Friday as prospects of a substantial US pandemic relief package boosted the metal’s appeal as an inflation hedge, while the Federal Reserve’s dovish monetary policy stance also supported prices, Reuters reported.
Meanwhile, silver was traded at Rs 1,270 per tola on Sunday, according to FeNeGoSiDA’s rate list. Its price slumped by Rs 40 a tola to Rs 1,230 per tola on Monday. The price of grey metal rose by Rs 20 a tola to Rs 1,250 per tola on Tuesday and went up by Rs 10 a tola to Rs 1,260 per tola on Wednesday. On Thursday, silver price fell by Rs 15 a tola to Rs 1,245 per tola, but then rose by the same amount on Friday to close the trading week at Rs 1,260 a tola.
The price of grey metal fell by 0.79 per cent or Rs 10 per tola in the domestic market during review period.
In the international markets, silver price bobbed throughout the week, moving in gold slipstream. It fell on Monday, gained on Tuesday, slipped on Wednesday, edged up on Thursday and inched down again on Friday, according to Reuters.
Written by Sandeep Sen
This news first appeared on https://thehimalayantimes.com/business/price-of-precious-metals-fall/ under the title “Price of precious metals fall”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.