KATHMANDU, Oct 26: Gold and silver prices dropped sharply in the domestic market on Sunday, following a significant fall in bullion prices in the international market.
According to Reuters, the international price of gold declined by over six percent last week, falling to US $4,118.29 per ounce on Friday from a record $4,381.21 on Monday. The drop has been attributed to easing US-China trade tensions and expectations that the US Federal Reserve may cut interest rates amid lower-than-expected inflation, which weakened safe-haven demand.
Revised interest rate corridor system introduced
With the global price plunging by $262.92 per ounce, the domestic gold price decreased by Rs 11,600 per tola over the week. The Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA) fixed the price at Rs 241,900 per tola on Sunday, down from Rs 253,500 per tola last Monday.
FENEGOSIDA said the price revision had been delayed due to public holidays during the Tihar festival. Although the international price has fallen by an average equivalent of Rs 14,230 per tola, the domestic adjustment does not fully reflect the global change.
Meanwhile, optimism grew among investors as US President Donald Trump and Chinese President Xi Jinping are set to meet on October 30, raising hopes of reduced trade tensions between the world’s two largest economies. However, analysts cautioned that price fluctuations may continue if uncertainty persists, according to international media reports.
Alongside gold, silver prices also dropped notably in the domestic market. Silver was traded at Rs 3,150 per tola on Sunday, down by Rs 265 from Rs 3,280 per tola last Monday.
