Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Gold prices in Nepal skyrocketed on Friday, marking one of the steepest single-day surges in the country’s history. According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the price of fine gold rose by Rs 7,100 per tola, reaching an all-time high of Rs 258,000 per tola. On Thursday, gold was traded at Rs 250,900 per tola.
In just one month, the domestic gold market has witnessed a staggering increase of Rs 43,000 per tola, with prices climbing from Rs 215,000 per tola on Bhadra 30 (September 15) to Friday’s record high. Traders and analysts attribute the sharp rise primarily to the surge in international gold prices, driven by global economic uncertainties, escalating geopolitical tensions, and strong investment demand.
Global Market Influence
In the international market, gold prices hovered around USD 4,370 per ounce on Friday, marking a significant rise compared to earlier weeks. One ounce equals approximately 2.43 tolas, indicating a parallel correlation between international and domestic price movements.
Experts note that the rise is largely fueled by a weaker U.S. dollar, expectations of lower interest rates by major central banks, and ongoing geopolitical instability in the Middle East and Eastern Europe. Global investors have increasingly turned to gold as a safe-haven asset, pushing its value to record levels across various markets.
Silver Also Gains
Silver prices in Nepal followed a similar upward trajectory. On Friday, silver prices rose by Rs 75 per tola, trading at Rs 3,350 per tola, up from Rs 3,275 per tola a day earlier. The surge in both gold and silver prices has heightened volatility in the precious metals market.
Market Reaction in Nepal
Gold traders in Kathmandu’s major markets, including New Road and Asan, reported brisk demand despite the price surge. Some retailers indicated that buyers were purchasing gold in anticipation of further price increases, while others noted cautious sentiment among small investors.
“The price jump reflects international market pressure rather than local speculation,” said a dealer affiliated with FENEGOSIDA. “However, sustained high prices could slow down jewelry sales and investment demand in the coming weeks.”
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