Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Gold prices in the Nepali bullion market recorded a steep correction on Sunday, retreating sharply after hitting successive record highs in recent trading sessions, according to the Federation of Nepal Gold and Silver Dealers’ Association (FeNEGOSIDA).
The price of fine gold fell by Rs 18,800 per tola in a single day, bringing the new trading rate down to Rs 300,000 per tola. The decline marks one of the most significant single-day drops in recent months, reversing the aggressive upward momentum seen last week in Nepal’s precious metals market.
On Friday, gold had been traded at Rs 318,800 per tola, while Thursday saw an even sharper spike when the price surged by Rs 20,500 per tola to reach Rs 339,300 per tola, an all-time high in the domestic market.
The rapid swing highlights heightened volatility in the Nepal gold market, driven largely by fluctuations in international bullion prices and currency movements.
Bullion traders say the correction reflects a cooling trend in global gold rates after speculative buying and safe-haven demand pushed prices to extreme levels earlier. The Nepali market, which is heavily influenced by international pricing and the US dollar exchange rate, often mirrors abrupt global shifts.
Silver Also Sees Major Decline
Silver prices also dropped significantly alongside gold. The price of silver fell by Rs 1,565 per tola on Sunday, with the new market rate fixed at Rs 5,500 per tola.
This represents a notable fall from Friday’s silver price of Rs 7,065 per tola, indicating broad-based weakness in precious metals trading.
Market Impact
Jewellers and bullion dealers report that extreme price volatility has affected consumer behavior, with many buyers adopting a wait-and-watch approach amid uncertainty over further price movements. High gold prices in recent weeks had already slowed retail demand for jewellery, especially in price-sensitive segments of Nepal’s market.
Analysts note that while gold traditionally serves as a safe-haven investment, sharp price swings can disrupt both investors and the jewellery trade. The domestic bullion sector remains closely tied to global commodity markets, geopolitical risk sentiment, and macroeconomic signals influencing international gold benchmarks.
With gold retreating from its historic peak, traders expect short-term consolidation but warn that further fluctuations are possible depending on global financial conditions, inflation outlooks, and currency trends affecting import costs in Nepal’s gold and silver trade.
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