Despite strong US dollar, gold price inched down in the domestic market -- thanks to drop in the international gold prices. [break]
Currency
Nepali currency shed 5 paisa against a dollar this week, rendering imports expensive, but raising the income of the exporters as well as remittances receivers. A US dollar was exchanged at Rs 74.20 on Friday.
Nepal Rastra Bank -- monetary authority of the nation -- had fixed the exchange rate of a dollar at Rs 74.15 on Sunday. As the greenback witnessed a drop in demand in India, Nepali rupee recorded an overnight gain of 78 paisa on Tuesday.
But the trend soon reversed and Nepali rupee shed 63 paisa on Wednesday and furthered weakened by 20 paisa as the market closed on Friday.
Nepali rupee recorded a drop of 3 paisa against a pound sterling as well, but gained 64 paisa against a euro this week. On Friday, a pound sterling was exchanged at Rs 110.06, while a euro was exchanged at Rs 91.14.
Bullion
Gold became cheaper by Rs 5 per one gram this week, as demand for yellow metal inched down in the international as well as domestic market. On Friday, gold was traded at Rs 30,950 per 10 grams.
Nepal Gold and Silver Dealers´ Association -- that fixes gold and silver prices in the domestic market -- had fixed the price of gold at Rs 31,000 per 10 grams on Sunday. As the international prices dropped substantially over the initial three days, prices in Nepal plummeted by Rs 265 on Monday and further Rs 255 on Tuesday.
But prices started to go up from Wednesday, when dealers traded gold at Rs 30,650 per 10 grams. Gold became dearer by further Rs 300 per 10 grams when the market closed on Friday.
The price of silver too jumped this week. On Friday, silver was traded at Rs 487 per 10 grams.
Any changes in gold and silver price in international market directly impact the prices in the local market, as Nepal fulfills domestic demand of the precious metals through imports.
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