Price of precious metals fairly stable

Kathmandu, August 11

Snapping three weeks of a losing streak, the price of precious metals was fairly stable in the trading week between August 5 and 10.

As per a price list of the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was priced at
Rs 56,000 per tola when the market opened on Sunday. Bullion price went up by Rs 100 a tola to Rs 56,100 per tola on Monday. Its price remained constant for the next three days before the price of the precious yellow metal edged up by Rs 100 a tola again on Friday to close the week at Rs 56,200 per tola.

As per FeNeGoSiDA price list, silver was traded at Rs 735 a tola throughout the week.

In India, gold was sold at a discount for the first time in six weeks on subdued demand as buyers bet that prices could fall still further after hitting near seven-month lows last week. Meanwhile Chinese buying picked up on the back of a firm yuan and trade tensions with the US.

“Jewellers bought gold in last few weeks for exhibition. They have enough inventory,” Ashok Jain, a proprietor of Mumbai-based wholesaler Chenaji Narsinghji, told Reuters. A five-day India International Jewellery Show kicked off earlier this week in Mumbai.

Dealers in India were offering a discount of up to $1.50 an ounce over official prices this week, compared with a premium of $1.50 last week.

In the Indian market, gold futures were trading around INR 29,641 per 10 grams on Friday, after falling to INR 29,422 earlier last week, their lowest since January 11.

Premiums in top consumer China ranged between $2 and $3 an ounce in review period, versus $1 to $3 last week, while premiums in Hong Kong were around 70 cents to $1.30 as against $1 to $1.40 previously.

In latest development in the ongoing trade spat between the two major economies, the United States Trade Representative’s office said it would begin collecting 25 per cent tariffs on another $16 billion in Chinese goods on August 23.