Gold price declines Rs 1,200; traded at Rs 116,500

KATHMANDU: Fine gold’s rate in the domestic markets plunged Rs 1,200 to stand at Rs 116,500 per tola, according to Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA). Value of Tejabi gold dropped to Rs 115,950 per tola. Similarly, price of silver also declined by a significant margin today. Silver is being traded at Rs 1,365 per tola, a fall of Rs 30 from the previous day.

As per the Bureau of Labor Statistics (USA), the much anticipated monthly and annual Consumer Price Index (CPI) revealed better-than-forecasted numbers leading to strengthening of US Dollar and weakening of bullion market. CPI (m/m) numbers stood at 0.3% while CPI (y/y) hiked to 3.1%. Improved inflation readings prompted more fears that the Federal Reserve will keep the interest rates higher. Financial markets will now focus on the upcoming manufacturing and consumer-sentiment-related reports from the US to ascertain the direction of Federal Reserve.