Gold Plunges Rs 9,900 per Tola, Silver Drops Rs 360 in a Week
Domestic gold prices fell sharply by Rs 9,900 per tola last week, closing at Rs 280,300, while silver dropped Rs 360 to Rs 3,825 per tola. The decline was driven by expectations of a Federal Reserve rate hike following elevated US inflation data, which reduced the appeal of the non-yielding metal.
Kathmandu, Oct 31 — The price of gold in the domestic market plunged Rs 9,900 per tola (11.6638 grams) last week, according to the Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA).
Gold closed the week at Rs 280,300 per tola, down from Rs 290,200 per tola at the close of the previous week.
During the period, the precious metal's price rose for four days, with the largest single-day increase of Rs 3,000 recorded on Monday. In the two-day decline, the sharpest drop of Rs 11,700 was noted on Sunday.
According to Reuters, international gold prices last week were influenced by expectations that the Federal Reserve would raise interest rates to curb inflation in the US market.
"Gold price dropped as data showing elevated US inflation reinforced expectations of a Federal Reserve interest rate hike later this year, reducing the appeal of the non-yielding metal," Reuters reported.
Meanwhile, the price of silver decreased by Rs 360 last week, falling from Rs 4,185 to Rs 3,825 per tola.