Gold prices climbed to yet another record high in the domestic market on Tuesday, mirroring the rally in the international market where bullion touched an all-time peak on the back of a weaker US dollar and expectations of a rate cut by the Federal Reserve. According to the Federation of Nepal Gold and Silver Dealers Associations, the price of fine gold rose by Rs 600 per tola, reaching Rs 205,900 per tola (11.664 grams)—the highest level ever recorded in the domestic market. Gold had set a record at Rs 205,300 per tola on Monday, while it was traded at Rs 203,600 per tola on Sunday.
Silver prices also rose to Rs 2,485 per tola, up from the previous day’s Rs 2,470. The surge in Nepal comes against the backdrop of global momentum. Gold prices climbed to an all-time high and sailed past $3,500 per ounce on Tuesday, extending gains to a sixth session on the back of a weaker dollar and rising bets of a US interest rate cut this month, according to Reuters. Gold prices rose 27% in the international market in 2024, and broke the $3,000 per ounce level for the first time in March this year.
Gold is widely considered a safe-haven asset during times of economic uncertainty and investors worldwide are increasingly shifting funds into bullion in recent years. “Gold’s rally could extend to $3,600 and even beyond by year-end if the Fed follows through with multiple rate cuts and if a Russia-Ukraine peace deal remains elusive,” Reuters quoted KCM Trade chief market analyst Tim Waterer as saying.
Nepal sources all of its gold through imports which means domestic prices are directly tied to international market trends. As a result, any uptick in global bullion prices quickly translates into higher costs in the Nepali market.
Gold first breached the Rs 200,000 threshold in the domestic market on Friday when the price of the yellow metal increased by Rs 1,200 per tola. It went up by Rs 3,000 per tola on Sunday, Rs 1,700 per tola on Monday, and Rs 600 per tola on Tuesday. The yellow metal has been shining in the domestic market for the past eight sessions, during which its price has risen by Rs 8,700 per tola. The continuous rise in prices over the past three days has added pressure on buyers ahead of the festive and wedding season, when demand for gold rises significantly.
