Price of precious metals up due to uncertainties

Kathmandu, January 2

The price of precious metals went up in the trading week between December 27 and January 1 as it remains supported by uncertainties over global economic future.

According to the rate list of Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was priced at Rs 94,200 per tola when the market opened on Sunday. Its price went up by Rs 700 a tola to Rs 94,900 per tola on Monday.

The gain was, however wiped out the very next day, as bullion price slumped by Rs 800 a tola to Rs 94,100 per tola on Tuesday. Gold recovered the earlier loss on Wednesday as its price rose by Rs 100 a tola to Rs 94,200 per tola, but it fell by Rs 100 a tola to Rs 94,100 per tola on Thursday. On Friday, the price of precious yellow metal rose by Rs 400 a tola to close the trading week at Rs 94,500 per tola.

Gold price went up by 0.32 per cent or Rs 300 a tola over the review period.

In the international markets, gold prices pared gains on Monday as the dollar recovered losses and stock markets rallied after US President Donald Trump signed a long-awaited pandemic aid bill, while liquidity remained low on account of the holiday season.

Its prices rose on Tuesday as the dollar weakened after the approval of larger coronavirus relief cheques by Democratic-led US House of Representatives, as per Reuters.

Gold prices were little changed on Wednesday as investors weighed news that US Senate Majority Leader Mitch McConnell postponed a vote on increased pandemic aid cheques.

It steadied as the dollar extended losses on Thursday, with the metal on track for its best year in a decade on economic uncertainty and as governments worldwide doled out massive stimulus to lessen the impact of the COVID-19 pandemic.

The international markets were closed on Friday in celebration of the New Year.

Meanwhile, silver was traded as Rs 1,280 per tola on Sunday, as per FeNeGoSiDA. Its price went up by Rs 35 a tola to Rs 1,315 per tola on Monday.

Silver lost some of its shine on Tuesday as its price fell by Rs 15 a tola to Rs 1,300 per tola. The price of grey metal rose by five rupees at tola on Wednesday to Rs 1,305 per tola, but then fell by the same amount to be priced at Rs 1,300 a tola on Thursday. Its price was stable on Friday. Silver price increased by 1.56 per cent or Rs 20 per tola during the review week.

Looking ahead, analysts say the dollar is in the middle of a significant devaluation. According to them, the current breakdown could extend into second quarter of 2021 before the next rebound and as a result, they expect sharply higher precious metals prices in the coming days.

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