Gold price at five-month low of Rs 52,250 per tola

KATHMANDU, May 25:

Gold price dropped to a five-month low of Rs 52,250 per tola on Sunday - the first trading day of the week.
The price of yellow metal was down by Rs 250 per tola (11.664 grams) compared to Saturday.

Price of gold had hit a four-month high of Rs 56,600 on February 25. However, price started to go down from mid-April when it was traded at around Rs 54,500 per tola. Since then, gold has become cheaper by Rs 2,250 per tola.

Traders have attributed the drop in price to the appreciation of Indian currency to US dollar. As the Nepali rupee is pegged with Indian currency, it strengthens against US dollar if the Indian currency gains value against the greenback.

“The Indian currency is getting stronger day by day. It has affected the price of gold in the domestic market,” Tej Ratna Shakya, immediate past president of Federation of Nepal Gold and Silver Dealers’ Associations, said.

US dollar was valued Rs 100.56 five months ago. However, US dollar was exchanged at Rs 93.94 on Sunday - down by a whopping Rs 6.62.
Shakya also said drop in gold price in the international market is the other reason that has made the yellow metal cheaper in Nepal. Gold price hovered around US$ 1,293 per troy ounce on Sunday, down from Saturday’s price of $1,294, according to Shakya.

“Gold price might go down further in the coming days as the victory of Narendra Modi in India has made positive impact on the Indian currency,” said Shakya.

Source: Republica