Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The price of gold in the Nepali market skyrocketed on Tuesday, setting yet another record high as it climbed by Rs 8,100 per tola in a single day, reaching Rs 248,500 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Associations (FENEGOSIDA).
On Monday, gold was traded at Rs 240,400 per tola, but strong global demand and fluctuating international market prices triggered an unprecedented rise. Traders and analysts say the ongoing global uncertainty, including fears of inflation and geopolitical tensions, has pushed investors worldwide toward safe-haven assets like gold.
Similarly, the price of silver also witnessed a sharp increase. From Rs 3,220 per tola on Monday, silver rose to Rs 3,325 per tola on Tuesday — marking the highest price ever recorded for silver in the Nepali market.
Gold traders said the market is being heavily influenced by international bullion trends, with the global price of gold nearing multi-month highs. In the international market, gold prices have been hovering around USD 2,650 per ounce, driven by expectations of U.S. Federal Reserve policy shifts, slowing global economic growth, and rising tensions in the Middle East and Europe.
Domestic traders are concerned that the continuous surge could dampen consumer demand ahead of the festive season. “The market is reaching a psychological threshold of Rs 250,000 per tola. If prices continue to rise at this pace, jewelry sales may decline significantly during Tihar and wedding seasons,” said a gold dealer in New Road, Kathmandu.
Despite soaring prices, some investors and speculators in Nepal are viewing gold as a safer hedge against currency depreciation and market volatility. However, jewelry retailers say retail demand remains sluggish due to the sharp rise in prices and reduced purchasing power.
Experts warn that prolonged price instability in the bullion market could also impact Nepal’s foreign exchange reserves, import bills, and overall financial stability, as Nepal imports nearly all its gold from the international market.
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