Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Gold and silver prices declined sharply in the Nepali bullion market on Friday, reflecting volatility in the precious metals segment amid shifting global commodity trends and domestic demand dynamics.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of fine gold (chhapawal) fell by Rs3,000 per tola, settling at Rs303,500 on Friday. On Thursday, gold was traded at Rs306,500 per tola.
The latest decline comes after gold reached its all-time high in the domestic market on Magh 15 (corresponding to late January 2026), when it was traded at Rs339,300 per tola. Since then, prices have shown a corrective trend, aligning with fluctuations in the international gold market and changes in the US dollar index.
Silver prices also recorded a notable drop. The price of silver decreased by Rs340 per tola to Rs5,000 on Friday, down from Rs5,340 per tola on Thursday.
Silver had similarly hit a historic peak on Magh 15, when it was traded at Rs7,505 per tola in the domestic market. The current price marks a significant retreat from that record level, indicating cooling demand and price adjustments in line with global bullion rates.
Market analysts attribute the recent decline in gold and silver prices to a combination of factors including easing international spot prices, profit-booking by traders, and relative stability in foreign exchange rates. As Nepal imports all of its bullion, domestic prices are heavily influenced by international gold prices, currency exchange movements, and central bank policies affecting liquidity.
The correction in precious metal prices is expected to provide temporary relief to consumers and jewelers, particularly as wedding season demand gradually picks up. However, traders caution that bullion prices remain sensitive to geopolitical tensions, global inflation expectations, and monetary policy signals from major economies.
Gold and silver remain key safe-haven assets in Nepal’s financial ecosystem, widely used for investment, savings, and ceremonial purposes. The coming weeks will determine whether the current decline signals a sustained downward trend or a short-term adjustment in a volatile global commodities market.
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