Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Gold prices in Nepal witnessed a sharp decline on Monday, falling by Rs 6,500 per tola in a single day, extending a broader weekly downturn that has seen prices drop by Rs 34,000.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold has been fixed at Rs 275,500 per tola for Monday, down from Rs 282,000 recorded the previous day. Notably, gold had already dropped by Rs 12,500 on Sunday, signaling heightened volatility in the domestic bullion market.
The precious metal has seen a steep correction over the past week. Just last Monday, gold was trading at Rs 309,500 per tola, meaning prices have fallen by Rs 34,000 within seven days.
Gold had reached an all-time high of Rs 339,300 per tola on January 28 (Magh 15), reflecting a significant reversal from peak levels.
Analysts attribute the decline primarily to global macroeconomic factors. Rising geopolitical tensions in West Asia have pushed up oil prices, increasing demand for the US dollar among importing nations. As countries prioritize dollar reserves for energy imports, increased gold selling has contributed to downward pressure on prices.
Additionally, global inflationary pressures driven by high energy costs are prompting central banks worldwide to consider or maintain higher interest rates. Elevated interest rates typically reduce the appeal of non-yielding assets like gold, further contributing to the decline.
Silver prices also dropped on Monday, falling by Rs 115 per tola. The metal is now trading at Rs 4,425 per tola, down from Rs 4,540 the previous day.
On a weekly basis, silver prices have declined by Rs 840 per tola. Last Monday, silver was priced at Rs 5,265 per tola.
Silver had previously reached its all-time high of Rs 7,505 per tola on January 28 (Magh 15), mirroring the broader correction trend seen in gold.
The recent volatility in gold and silver prices reflects Nepal’s sensitivity to global commodity markets, particularly movements in oil prices, US dollar strength, and international monetary policy trends. Investors and traders are likely to remain cautious as global uncertainties continue to influence precious metals markets.
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