Gold surges Rs 9,500 to record Rs 318,800 per tola; Silver hits all-time high

KATHMANDU: Nepal’s bullion market witnessed another historic surge on Wednesday, with gold prices jumping sharply in a single trading day and silver also reaching a record high, reflecting strong global momentum and sustained investor demand for precious metals.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold rose by Rs 9,500 per tola compared to the previous day, reaching an unprecedented Rs 318,800 per tola. Silver also climbed by Rs 430, trading at Rs 7,300 per tola, marking the highest level recorded so far in the domestic market.

Just a day earlier, on Tuesday, gold was priced at Rs 309,300 per tola, while on Monday it traded at Rs 309,000. Within just the first two weeks of the current month, gold prices have increased by Rs 42,300 per tola, an unusually rapid escalation that traders say has begun to affect market transactions and consumer purchasing behavior.

Silver prices have also followed a consistent upward trajectory. After trading at Rs 6,870 per tola on Tuesday and Rs 6,765 on Monday, the metal has now climbed to Rs 7,300. On Sunday, silver had been traded at Rs 6,480 per tola, underscoring the sharp short-term rally.

Traders attribute the domestic spike primarily to movements in the international bullion market. In global trading on Wednesday, gold was reported at USD 5,258.87 per ounce, up from USD 5,081.57 the previous day. Silver also showed strong gains, moving from USD 109.76 per ounce to around USD 171.15 per ounce in international markets.

Financial analysts have been issuing increasingly bullish projections for precious metals. Several international banks and commodity analysts have suggested gold could approach USD 6,000 per ounce by the end of 2026, with some medium-term forecasts (2027–2028) ranging between USD 6,000 and USD 7,000 per ounce.

Silver, meanwhile, is drawing attention due to its expanding industrial role. Analysts point to rising demand from solar energy systems, electric vehicles, electronics manufacturing, and advanced technologies as structural drivers supporting long-term price strength. Some global forecasts suggest silver could reach USD 120–150 per ounce within the next one to two years, with potential to move beyond USD 170 if safe-haven demand intensifies alongside gold.

Market experts cite a combination of global economic uncertainty, geopolitical tensions, expectations of interest rate cuts in major economies, and investor migration toward safe-haven assets as key forces lifting gold and silver prices. A weaker US dollar, inflation concerns, and continued gold reserve accumulation by central banks are also seen as major contributing factors.

In Nepal, the impact is amplified by import dependency, limited supply, and rising investment demand. Although the wedding season typically boosts gold consumption, traders report that exceptionally high prices are now restraining consumer purchases, leading to slower physical trade despite record price levels.

With global market volatility, shifting investor sentiment, and domestic supply-demand dynamics all in play, bullion dealers say price instability is likely to persist in the near term, with international economic trends expected to remain the decisive factor for future movements in gold and silver rates.