After hitting a new high, gold price receded in the domestic market, resulting in a marginal drop in its value through the last six trading days. [break]
Currency
After a brief gain, Nepali currency devalued by a whopping Rs 2.55 against a US dollar this week, rendering imports expensive, but bringing cheers to the exporters and remittance receivers. A US dollar was exchanged at Rs 74.96 on Friday.
Nepal Rastra Bank, country´s monetary authority, had fixed the exchange rate of a dollar at Rs 72.41 on Sunday. As the greenback witnessed a dramatic rise in demand in India, Nepali rupee instantly caught downward drift and shed 20 paisa on Monday and further 78 paisa on Tuesday.
It regained 23 paisa against a dollar on Wednesday, compared to the previous day, but again depreciated by a sharp Rs 1.19 on Thursday. Rupee shed further 61 paisa when the market closed on Friday.
Likewise, Nepali rupee weakened by Rs 2.09 against a euro and Rs 2.01 against a pound sterling. On Friday, a euro was exchanged at Rs 93.10 and a pound sterling was valued at Rs 107.87.
Bullion
Even though the price of the yellow metal jumped to a new high, consumers by the end of the trading days found its price drop marginally, compared to the opening day of the week. On Friday, gold was traded at Rs 29,625 per 10 grams.
The market had opened with the yellow metal priced at Rs 29,630 on Sunday this week. As financial crisis in Greece continued to leave a strong impact in the global gold market, the price jumped to Rs 30,225 per 10 grams on Monday, creating new record in the domestic market.
But prices started to recede from Tuesday. On Tuesday, gold became cheaper by Rs 300 per 10 grams, and further Rs 225 on Wednesday. By Friday, the gold price became cheaper by Rs 5 per 10 grams, compared to the opening day of the week.
The price of silver, on the other hand, spiraled down to Rs 463 per 10 grams on Friday, compared to Rs 480 of Sunday.
As Nepal fulfills domestic demand of gold and silver through imports, any changes in their global prices directly impact the prices in the local market.
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