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Domestic price of precious metals declines

As the Indian currency gained strength against the US dollar the price of gold and silver significantly decreased in the
domestic market in the trading week between December 16 and 21.

As per the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was traded in the domestic market at Rs 59,500 per tola on Sunday. On Monday, the price of gold went down by Rs 200 a tola to Rs 59,300 per tola. However, the next day price of the bullion increased by Rs 100 a tola to Rs 59,400 per tola. On Wednesday, however, it again slipped by Rs 600 per tola to Rs 58,800 a tola. Meanwhile, the price of the precious yellow metal remained stable for the next two days to close the week at Rs 58,800 per tola on Friday.

Meanwhile, silver was traded at Rs 730 a tola on Sunday and its price went down by five rupees a tola the next trading day to Rs 725 per tola. However, it rose by five rupees per tola to Rs 730 a tola on Tuesday. On Wednesday, silver price again decreased by five rupees per tola to Rs 725 a tola. Price of the grey metal continued to decline on Thursday, descending by five rupees per tola to Rs 720 a tola and remained stable on Friday to close the week at Rs 720 a tola.

The week-on-week review shows that gold price went down by Rs 700 a tola in the domestic market and that of silver too decreased by Rs 15 a tola.

Gold inched lower on Friday in the international market as the dollar rebounded but the metal was on track for a weekly gain as risk appetite waned on fears of a possible slowdown in global growth, Reuters reported.

Spot gold edged 0.1 per cent lower to $1,259.01 per ounce, after nearly hitting a six-month high of $1,266.40 on Thursday. The metal was, however, on course for a weekly gain of about 1.7 per cent. US gold futures fell by 0.4 per cent to $1,262.50 per ounce.

“We have bounced up against a resistance here, around $1,260-$1,265, so it seems like a firm ceiling here,” said Bart Melek, head of commodity strategies at TD Securities. “Part of the downside is because we failed to break above that level and at the same time, we had a bit of an increase in the dollar.”

According to Reuters, keeping gold’s momentum in check was the dollar, which reversed most of its losses after the US
Federal Reserve earlier this week flagged fewer interest rate hikes, and investors sought the greenback’s safety on worries about a possible US government shutdown.

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