Tuesday, May 24, 2022

Sell-off in global markets dent prices of precious metals


Precious metals have pulled back from the recent troughs amid a sharp sell-off in the global markets, denting its prices in the domestic market as well.

Consequently, gold and silver prices fell in the local market in the trading week between August 30 and September 4.

According to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was traded at Rs 97,200 per tola on Sunday. On Monday, its price rose by Rs 300 a tola to Rs 97,500 per tola.

Gold futures ended higher on Monday, buoyed by weakness in the US dollar. Consequently, gold price surged by Rs 900 a tola to Rs 98,400 per tola in the Nepali market on Tuesday.

However, starting Wednesday, gold price retreated as the dollar rebounded and an uptick in risk appetite following better-than-expected economic data dented demand for the safe-haven metal.

Recent economic data from China and the United States that bettered expectations whetted risk appetite among investors, Reuters reported.

As per FeNeGoSiDA, gold price slumped by Rs 1,200 a tola to Rs 97,200 per tola on Wednesday. It fell again by Rs 700 a tola to Rs 96,500 per tola on Thursday and slipped Rs 100 a tola on Friday to close the trading week at Rs 96,400 per tola.

The price of the precious yellow metal fell 0.82 per cent or Rs 800 a tola during the review week.

The loss was, however, only 0.51 per cent or Rs 500 per tola when compared to previous week’s closing rate of Rs 96,900 a tola.

Meanwhile, silver was priced at Rs 1,340 per tola when the market opened for trading on Sunday, as per the federation.

Similar to gold price, the price of the grey metal went up for the next two days — by Rs 25 a tola to Rs 1,365 per tola on Monday and by Rs 30 a tola to Rs 1,395 per tola on Tuesday.

Silver price reversed course for the next three days — down Rs 30 a tola to Rs 1,365 per tola on Wednesday, down Rs 20 a tola to Rs 1,345 per tola on Thursday and down Rs 35 a tola on Friday to close the trading week at Rs 1,310 per tola.

Silver price fell by Rs 30 a tola or 2.24 per cent during the review week — same as in week-onweek as the opening rate of the grey metal for the review week was the same as the closing rate of the previous week — Rs 1,340 per tola.

A version of this article appears in e-paper on September 6, 2020, of The Himalayan Times.

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