Gold prices in Nepal surged to an all-time high of Rs 233,100 per tola (11.664 grams) on Monday. According to the Federation of Nepal Gold and Silver Dealers Association, the yellow metal was traded at Rs 223,200 per tola when markets closed for the Dashain holiday on September 28. When trading resumed on Sunday, prices jumped by Rs 9,900 per tola to reach Rs 230,600, and rose by another Rs 2,500 per tola on Monday.
With this, gold has become dearer by nearly Rs 10,000 per tola since the market closed for Dashain holiday last week. The recent surge follows weeks of steady appreciation in the bullion market. Gold first breached the Rs 200,000-level on August 29, posting an overnight gain of Rs 1,200 per tola. The price then surged past Rs 210,000 on September 5, when it traded at Rs 210,400 per tola, and again crossed Rs 220,000 on September 23, after a steep rise of Rs 3,900 per tola in a single day. The price of silver also climbed after the long festival holiday. It rose by Rs 150 per tola from Rs 2,810 before Dashain to Rs 2,960 per tola on Monday.
The sharp rise in local gold prices mirrors movements in the global market. Gold prices soared past the $3,900-per-ounce mark for the first time in the international market on Monday, driven by renewed safe-haven demand as investors reacted to a fall in the Japanese yen and mounting uncertainty over a US government shutdown, according to Reuters. “Gold has climbed 49 percent so far this year after a 27 percent rise in 2024, helped by strong central bank buying, increased demand for gold-backed exchange-traded funds, a weaker dollar and growing interest from retail investors seeking a hedge amid rising trade and geopolitical tensions,” Reuters added.
Since Nepal meets all its gold demand through imports, domestic prices are directly influenced by international market fluctuations and exchange rate movements. As the festive season continues with Tihar and Chhath ahead, gold traders expect sustained demand despite high prices. However, buyers are likely to remain cautious as record rates make jewelry purchases significantly more expensive.
