Money
Gold price dips Rs600 per tola
Gold price dipped Rs600 per tola (11.66 gm) in the domestic market on Friday as the US dollar gained strength.Gold price dipped Rs600 per tola (11.66 gm) in the domestic market on Friday as the US dollar gained strength.
According to the Federation of Nepal Gold and Silver Dealers’ Association (Fenegosida), the yellow metal traded at Rs55,000 per tola on Friday.
According to Reuters, the dollar climbed to its highest level in almost 14 years against a basket of currencies on Friday, while the US bond yields were set for their biggest fortnightly rise in 13 years on bets the US inflation and interest rates are headed higher.
“A growing perception that the economic policies of the US President-elect Donald Trump will push up consumer prices helped put the dollar on track for its biggest two-week rise against Japan’s yen in almost 30 years,” stated Reuters quoting the analyst Dhara Ranasinghe.
Gold price has been fluctuating in the international market since Trump took the White House.
Tej Ratna Shakya, past president of Fenegosida, attributed the fall in gold price to soaring US dollar.
“In addition, the Federal Reserve Bank’s statement on Thursday that it would raise the interest rate from December also prompted investors to divert investment to stock market from gold,” Shakya said. “As a result, the gold price witnessed the downturn.”
Earlier on Tuesday, the yellow metal fell to a five-month low of Rs55,000 per tola as international bullion prices came under pressure due to lower demand following Trump’s victory in the US presidential election. Prices had shot up by Rs1,300 to Rs58,200 per tola right after global markets saw that Trump could become the next president of the world’s largest economy.
Silver price also plunged to Rs785 per tola from Rs795 per tola. As per traders, increase in supply and high selling pressure pushed down silver price.