Laxmi Capital News
Gold price dips as greenback recovers

A rise in the US dollar indexand a dip in crude oil prices were bearish ‘outside market’ elements thatworked against the precious metals markets in the trading week between December10 and 15.

The greenback weakened in thereview period after the Federal Reserve on Wednesday left its rate outlook forthe coming years unchanged, even as policymakers projected a short-term jump inUS economic growth from the Trump administrations proposed tax cuts.

The dollar gained against theeuro on Thursday after the European Central Bank stuck with its pledge toprovide stimulus for as long as needed, before losing ground again after two USRepublicans sought changes to the proposed legislation to overhaul the US taxcode.

“Markets are reallyconsolidating at this point into holiday trading,”Reuters quotedMark McCormick, North American head of FX strategy at TD Securities in Toronto,as saying. “People will be eyeing the US tax plan. There are expectations buildingthey could have it done by next week. If not, that pushes it off until nextyear. That’s your last major risk event.”

The tax bill needs a simplemajority to pass in the Senate, in which Republicans hold just 52 of the 100seats, and no Democrats are expected to support it.

In the domestic market, theFederation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) had setthe rate for gold at Rs 54,500 per tola when the marketopened for trading on Sunday. The bullion price dropped by Rs 200 a tola eachday for the next two days to be traded at Rs 54,300 per tola onMonday and Rs 54,100 a tola on Tuesday. The precious yellowmetal was traded at the same rate on Wednesday before recovering the earlierloss by surging Rs 400 a tola to Rs 54,500 per tola onThursday. On Friday, however, gold price dipped by Rs 200 a tola toclose the week at Rs 54,300 per tola.

Similarly, FeNeGoSiDA had setsilver price at Rs 715 a tola on Sunday and its priceremained constant for the next three days. On Thursday, the price of the greymetal rose by five rupees per tola to be traded at Rs 720 a tola.On Friday, however, it annulled the gain of the earlier day by shedding fiverupees per tola to close the week at Rs 715 a tola —the same rate at which it was traded in the beginning of the week.

Source :The Himalayan Times, 18th December, 2017

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