Gold oscillates with investment patterns

KATHMANDU, APR 23 -

Domestic gold prices have been on a bumpy trajectory as global bullion markets and currency rates continue to fluctuate.

According to the Federation of Nepal Gold and Silver Dealers’ Association (Fenegosida), the precious metal rose Rs 300 to Rs 53,900 per tola on Tuesday after dropping Rs 500 on Monday. Prices had remained constant at Rs 54,100 per tola during the previous four days.  

Fenegosida President Mani Ratna Shakya said that prices had been jumping up and down due to international market trends as fickle investors change their minds prompted by shifts in the stock market and a stronger dollar.

“Gold prices in the international market have fluctuated, and the Nepali rupee has been following the movement of the US dollar which has resulted in price swings in the local gold market,” he said.  

According to Fenegosida, gold was traded at US$ 1,287.20 per ounce on Tuesday against US$ 1285.10 on Monday. Meanwhile, the exchange rate of the Nepali rupee vis-à-vis the greenback rose to Rs 97.45 from 96.85 on Monday.

Gold prices have been fluctuating since the beginning of the year. The yellow metal traded at Rs 53,300 per tola on April 1 and lost Rs 200 per tola on April 2 before stabilizing at Rs 53,350 till April 4. Gold climbed from Rs 54,100 per tola at the beginning of the second week of April and to Rs 54,600 at the end of the week.

Meanwhile, bullion traders said that demand was lower than during last year’s April marriage season despite the fall in prices. “Demand stood at 35-40 kg daily during April last year,” said Shakya. “But these days sales have remained in the range of 25-30 kg.” Shakya said that buyers seemed to be in a wait-and-watch mode.

Similarly, Tej Ratna Shakya, proprietor of Tejwin Jewellery on New Road, said that demand had slipped compared to last year. “Only those in urgent need are purchasing gold,” he said. “Customers who want to buy gold as a safe investment are not coming to us.”

Meanwhile, silver rose Rs 10 to reach Rs 800 per tola.

Source: The Kathmandu Post