Gold price increases, silver stable

Kathmandu, October 27

Weakening of the US dollar in the international market caused the gold price to rise, while that of silver was stable in the trading week between October 21 and 26.

Week-on-week, gold price in domestic market rose by Rs 200 whereas that of silver remained constant.

As per Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold price opened at Rs 60,000 per tola on Monday and stayed the same on Tuesday. The market had remained closed on Sunday due to the Dashain vacation. On Wednesday, gold price went up by Rs 100 a tola to Rs 60,100 per tola. On Thursday too, the price of the precious yellow metal increased by Rs 300 a tola to Rs 60,400 per tola. However, on Friday it decreased by Rs 200 a tola to Rs 60,200 per tola.

Meanwhile, silver was traded at Rs 745 a tola on Monday and Tuesday. Its price increased by five rupees per tola to Rs 750 a tola on Wednesday and remained stable the next day. On Friday, however, price of the grey metal fell by five rupees per tola to Rs 745 a tola.

As per FeNeGoSiDA, the price of precious metals witnessed a decline towards the end of the week due to the Indian currency gaining strength on Friday.

Gold demand in India this week was muted as a recent rally in domestic prices prompted buyers to postpone purchases despite approaching festival and wedding season, Reuters said.

Investor flows into bullion, considered a safe store of value during times of financial, economic and geopolitical uncertainty, can be seen by the rise in holdings of physically-backed exchange traded products.

Holdings in world’s largest gold backed exchange-traded fund, SPDR Gold Trust, saw outflows of about 4.5 million ounces between late April and early October. But holdings are now at highest since end of August, at 24.1 million ounces as per Reuters.

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