With the reduction of Rs 2,200 per tola on Thursday, November 14, gold price in Nepal has dropped for five consecutive days.
According to the Federation of Nepal Gold and Silver Dealers' Association (Fenegosida), fine gold’s price was set at Rs 160,000 per tola (11.66 gram) for the day, down from Rs 162,200 the previous day.
This week, the price of the precious yellow metal decreased by Rs 600 per tola on Sunday, Rs 1,000 on Monday, Rs 2,400 on Tuesday and Rs 400 on Wednesday.
Earlier on October 31, it had peaked in the domestic market to a record high of Rs 171,000 per tola. The record was set when preparations were in full swing for Tihar celebrations.
On November 5, after the Tihar holidays, gold prices fell sharply by Rs 2,800 per tola, but rose by Rs 300 per tola the following day.
The fluctuation continued.
While a Rs 4,000 decline was seen last Thursday following Donald Trump’s US presidential election victory, gold became expensive by Rs 2,000 on Friday following the US Federal Reserve slashing its key interest rate by 25 basis points.
The reduction in gold price, which was rallying to record highs until a few weeks ago, follows strengthening US dollar since Donald Trump’s victory in the US presidential election last week.
In the international market, gold prices fell to two months low, while the dollar surged to its highest value in a year against major currencies on Thursday.
“Gold prices fell to a two-month low on Thursday, pressured by a strong dollar rally, though traders have not lost confidence in a December rate cut following the latest US economic data,” reported Reuters. “Spot gold fell 0.3 percent to $2,565.89 per ounce as of 10:08 AM ET (1508 GMT), touching its lowest level since September 12. US gold futures were down 0.6 percent to $2,571.20.”
“The US dollar continued its relentless march higher on Thursday, trading at a one-year high against major peers and headed for a fifth straight daily gain fuelled by higher yields and Donald Trump's election victory in the United States,” says a separate Reuters report.
Similarly, the price of silver also decreased to Rs 1,905 per tola on Thursday, from Rs 1,940 the previous day.
