Prices of gold and silver continue to decline for eight straight days

Published On: October 3, 2023 07:00 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Oct 3: Gold and silver prices experienced a continued decrease on Tuesday as well.

After eight consecutive days of decline, the cost of fine gold dropped to Rs 106,600 per tola. This marks a significant drop of Rs 1300 per tola since Monday when the price was at Rs 107,900 per tola.

Similarly, today the price of standard gold has also decreased to become Rs 106,100 per tola today. It was traded at Rs 107,400 per tola yesterday.

Price drops by Rs 5,600 per tola in eight days

According to the Federation of Nepal Gold and Silver Dealers’ Associations (FENEGOSIDA), the price of gold has decreased by Rs 5,600 per tola over the last eight days since September 25.

The price of fine gold, which was traded at Rs 112,200 per tola on September 25, has decreased consistently since then to become Rs 160,600 per tola today.

Similarly, the price of silver has also decreased by Rs 120 per tola in eight days. The price of silver, which was traded at Rs 1,430 on September 25, stands at Rs 1,310 on October 3.

According to the FENEGOSIDA, the reason for the decrease in the price of gold and silver is the decrease in the international market price.

Dharma Sundar Bajracharya, secretary general of the FENEGOSIDA, said that when the value of the dollar became stronger, the investment shifted to the dollar by selling gold. He says that with the strengthening of the dollar, the big countries of Europe have started investing in the dollar by selling the gold they kept in blocks in the banks.

The primary reason for the decline in gold and silver prices, according to FENEGOSIDA, is the fluctuation in the international market prices.  FENEGOSIDA Secretary General Bajracharya said that the strengthening of the US dollar has led to a shift in investments towards the dollar, with large European countries starting to invest in dollars by selling off gold reserves held in banks.

Over the past 11 days, the international gold market has seen a decline of $103 per ounce. Gold, which was trading at $1,924 per ounce on September 22, has fallen to $1,821 on October 3.

It is estimated that the price of gold may continue to decline further.

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