Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Gold prices in the Nepali market recorded a sharp single-day surge on Wednesday, rising by Rs 14,400 per tola, reflecting strong upward momentum in the precious metals segment and renewed volatility in bullion trading.
According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the price of fine gold has been fixed at Rs 304,700 per tola on Wednesday. Just a day earlier, on Tuesday, gold was traded at Rs 290,300 per tola, highlighting the scale of the abrupt price escalation within 24 hours.
The steep rise has drawn attention from traders, investors, and consumers alike, as such a large daily movement is considered significant even in a market known for global price pass-through and currency-linked fluctuations. Gold prices in Nepal are primarily influenced by trends in the international bullion market and exchange rate movements of the US dollar against the Nepali rupee, along with domestic demand conditions.
Silver Also Moves Up
Silver prices also followed the upward trend. The federation reported that silver prices increased by Rs 265 per tola on Wednesday. With the rise, silver is now being traded at Rs 5,600 per tola, compared to Rs 5,335 per tola on Tuesday.
The parallel increase in both gold and silver indicates a broader rally in precious metals rather than an isolated commodity movement.
Market Implications
Jewellery traders say sudden price spikes often affect retail demand, especially in price-sensitive markets like Nepal, where gold buying is closely tied to weddings, festivals, and savings behavior. A sharp rise in bullion prices can lead to temporary slowdown in physical transactions as buyers wait for price corrections.
At the same time, investors who view gold as a hedge against inflation and currency risks may interpret the rally as a signal of strengthening safe-haven demand globally, which eventually transmits to domestic prices.
With gold now above the Rs 300,000 per tola mark, market participants are closely watching whether the rally sustains or faces near-term correction, as daily price adjustments continue to track international bullion market movements and currency dynamics.
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