Gold hits new all-time high at Rs 282,000 per tola

KATHMANDU: Gold prices in the domestic market have surged to a fresh historical record, reflecting continued volatility in the global precious metals market and strong local demand.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold increased sharply by Rs 4,200 per tola on Monday, pushing the rate to an unprecedented Rs 282,000 per tola.

On the previous trading day, gold was traded at Rs 277,800 per tola. With Monday’s jump, the yellow metal has not only extended its upward momentum but also broken its own recent record.

Just last Wednesday, gold had reached a then all-time high of Rs 278,000 per tola. That record has now been surpassed within days, underscoring the rapid pace of price escalation in the bullion market.

Market analysts attribute the continued rise in gold prices to a combination of global and domestic factors. Internationally, gold has remained firm amid geopolitical uncertainty, expectations of interest rate cuts by major central banks, and a weaker US dollar, which typically boosts demand for safe-haven assets. These global trends are directly transmitted to Nepal’s market, which is heavily dependent on international price movements.

At the domestic level, the sustained rise is also influenced by seasonal demand, supply constraints, and currency dynamics. As Nepal imports most of its gold, any fluctuation in the global price and the exchange rate has an immediate impact on local prices.

Silver prices have also climbed to a new record, mirroring the bullish trend in gold.

The association reported that silver rose by Rs 185 per tola on Monday to reach Rs 5,810 per tola. On the previous day, silver had been traded at Rs 5,625 per tola.

Although silver had earlier touched a peak of Rs 6,655 per tola last Wednesday, Monday’s price marks the highest level in the current trading sequence, highlighting continued volatility in the silver market as well.

Traders say persistent uncertainty in global financial markets has increased investor appetite for precious metals as a store of value, especially at a time when equity and currency markets remain unstable in many parts of the world.

The sharp rise in gold and silver prices is expected to have mixed implications for Nepal’s economy. While higher prices benefit traders holding inventories and boost the value of assets linked to gold, they also increase costs for consumers, particularly ahead of the wedding and festive seasons when jewelry demand typically rises.

Jewelry entrepreneurs warn that sustained high prices could dampen retail demand, affecting sales volumes despite higher per-unit values.

The continuous rally in precious metals is also being closely watched by policymakers and investors, as gold is widely regarded as a barometer of global economic uncertainty.

With prices touching record highs within a short span, the market remains highly sensitive to international developments, including monetary policy signals from major economies and movements in global commodity markets.

If current trends persist, traders do not rule out further volatility in the days ahead, keeping both consumers and investors on alert.