Gold price drops by Rs 1,200 per tola; traded at Rs 118,200 today

KATHMANDU: The price of fine gold dropped to Rs 118,200 per tola, a decrease of Rs 1,200 from the previous day, according to Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA). Likewise, the worked gold declined to Rs 117,650 per tola. The price of silver decreased by Rs 15 to trade at Rs 1,400 per tola.

Gold price declined on the back of strengthening dollar coupled with uncertainty surrounding upcoming decisions of the Federal Reserve, the central bank of the USA. Investors are speculating on the time frame in which Federal Reserve may reduce the interest rates due to the latest inflation data.

Consumer Price Index (CPI) report showed the annual inflation rate hiked to 0.3%. The report has caused a mixed reaction in the market sentiments with the majority predicting that Fed policymakers may postpone the first rate cut initially forecasted to occur as early as March.