Currency gain and improved supplies, on the other hand, dragged down the prices of gold in the domestic market, much to the relief of general consumers but worries for investors. [break]
Currency
Nepali rupee gained 28 paisa against a dollar this week, as demand for the greenback slid in India with whose currency Nepali rupee is pegged. On Friday, a dollar was exchanged at Rs 74.31.
Nepal Rastra Bank, country´s monetary authority, had fixed the exchange rate of a dollar at Rs 74.59 when the market opened on Sunday. However, Nepali rupee continued to strengthen over the following days, gaining 34 paisa by Wednesday and further 31 paisa on Thursday. However, rupee shed 37 paisa against greenback on Friday, when the market closed this week.
Likewise, rupee strengthened against euro and pound sterling as well by Rs 1.08 and 32 paisa respectively this week. A euro was exchanged at Rs 100.65 on Friday and a pound sterling was valued Rs 116.09 on the day.
Bullion
Gold became cheaper by Rs 4.50 per ten grams this week, as improved supplies caused its prices to go down even though the demand for the yellow metal continued to remain strong in the market. On Friday, gold was traded at Rs 27,390 per 10 grams.
Nepal Gold and Silver Dealers´ Association, which sets the price of gold in the domestic market, had fixed the price of the yellow metal at Rs 27,435 per 10 grams.
Amid short supply and increase in global prices, gold prices had soared by Rs 170 per 10 grams on Tuesday and further Rs 45 on Wednesday. However, gold shed Rs 300 per 10 grams overnight as supplies situation improved on Thursday. On Friday, prices inched up by Rs 40 per 10 grams.
Amid plummeting demand and global prices, the price of silver too dropped over this week. It was traded at Rs 421 on Friday.
Related story
One rupee campaign to build Universal Peace Center in Lumbini
