Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s gold market has entered a sharp slowdown phase, with trading activity nearly stagnant as volatile global prices push consumers into a cautious “wait-and-see” mode. Industry insiders report that demand has dropped so significantly that around 70 kilograms of gold imported before the elections remain unsold in bank vaults.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the domestic bullion market is currently facing suppressed consumer demand driven by unpredictable price swings in the international market.
Federation President Arjun Rasaili stated that customers are delaying purchases amid uncertainty over price direction. “There is a complete wait-and-see sentiment in the market. Despite expectations of increased demand during the upcoming wedding season in Baisakh, current sales remain almost stalled,” he said.
The lack of trading activity has directly impacted inventory cycles. Commercial banks, which are authorized to import gold in Nepal, are currently holding over 70 kg of gold stock that was brought in prior to the election period but has yet to find buyers.
Meanwhile, gold prices in the domestic market surged sharply. On Tuesday, the price of gold jumped by Rs 6,700 per tola, reaching Rs 290,200 per tola, reflecting continued volatility linked to global market trends.
Market analysts note that while seasonal demand—particularly during Nepal’s peak wedding period—could provide a temporary boost, sustained recovery will depend on price stability and broader consumer confidence. The current slowdown also signals tightening liquidity cycles in the luxury goods segment, with potential spillover effects on imports, banking exposure, and retail trade dynamics.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
