Kathmandu, July 14
The price of precious metals fell in the trading week between July 8 and 13 because of strains between the United States and China seemingly waning and the dollar strength, according to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA).
Tensions between the United States and China eased after US Treasury Secretary Steven Mnuchin said on Thursday talks between the world’s two largest economies could be reopened if Beijing was willing to make significant changes.
According to the price list published by the federation, gold was traded at Rs 57,800 per tola on Sunday and its price was unchanged the next day. On Tuesday, however, bullion price went up by Rs 100 a tola to Rs 57,900 per tola. The price of the precious yellow metal dropped over the next two days — by Rs 300 a tola to Rs 57,600 per tola on Wednesday and by Rs 400 a tola to Rs 57,200 per tola on Thursday. Its price remained stable on Friday.
Silver, on the other hand, was traded at Rs 760 a tola on Sunday and its price was the same the next day. Its price went up by five rupees per tola to Rs 765 a tola on Tuesday. For the next two days, the price of the grey metal dropped by five rupees per tola each day, to be traded at Rs 760 a tola on Wednesday and Rs 755 per tola on Thursday. Similar to gold, its price was constant on Friday.
Meanwhile, demand for physical gold in India picked up in the week as prices fell to a five-month low, but buyers in other major centres in Asia awaited a bigger correction before placing orders, Reuters reported.
In top consumer China, premiums of $1 to $4 an ounce were being charged over the international benchmark versus $2 to $5 an ounce last week.
In the other international markets, gold prices slid to seven-month lows on Friday as the dollar rose due to easing trade tensions and weak demand for the precious metal on expectations of higher US interest rates.
A rising US currency makes dollar-denominated gold more expensive for holders of other currencies, which potentially weighs on demand.
Gold does not earn any interest or dividends and costs money to store and insure.
The Federal Reserve last month raised its benchmark overnight lending rate 25 basis points to 1.75 to two per cent. Expectations are for another two rate rises this year and three in 2019.
Written by Nikki Hamal
This news first appeared on https://thehimalayantimes.com/business/price-of-precious-metals-descends/ under the title “Price of precious metals descends”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.
