Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s gold market has hit a record high as prices soared to Rs 2,50,900 per tola on Thursday — the highest level ever recorded in the country — amid mounting demand and limited imports.
According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the price of gold increased by Rs 2,000 per tola compared to Wednesday, while silver rose by Rs 35 per tola to reach Rs 3,275. The consistent surge in both gold and silver prices has intensified concerns among traders and consumers, especially as supply shortages persist despite a slight relaxation in import restrictions.
Traders say the shortage of gold in the domestic market has been fueling a price spike, driven by strong festive demand and the limited import quota set by the Nepal Rastra Bank (NRB). Following persistent lobbying from gold traders, the central bank recently raised the daily import quota from 20 kilograms to 25 kilograms. However, dealers say the market remains undersupplied and have demanded that the quota be increased to at least 40 kilograms per day to meet current consumption levels.
“The 25 kg quota is insufficient given the current festive season and the rising international gold prices,” a trader from New Road, Kathmandu said. “We are struggling to fulfill customer demand, and prices are being pushed up due to scarcity.”
Experts attribute the sharp rise in prices to both global and domestic factors. Internationally, gold prices have surged amid geopolitical tensions and investor demand for safe-haven assets. Locally, limited imports and rising demand during the festive and wedding season have intensified the shortage.
Gold dealers have urged the central bank to adopt flexible import policies and streamline distribution to curb market distortion. They warned that if the supply crunch continues, prices could rise even further in the coming weeks.
The ongoing shortage has also affected the jewelry industry, with several gold shops reporting delays in deliveries. Traders fear that if the situation persists, it could lead to a spike in illegal gold smuggling, distorting the formal market further.
As the global economic uncertainty continues to strengthen gold’s appeal as a secure investment, Nepal’s market remains caught between soaring demand and restricted supply — creating pressure on consumers and jewelers alike.
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