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Kathmandu, Nepal: Gold prices witnessed a sharp surge in the domestic market on Sunday, increasing by a remarkable Rs 20,500 per tola in a single day.
According to the Federation of Nepal Gold and Silver Dealers' Association, the price of fine gold has reached Rs 311,100 per tola today, up from Rs 290,600 per tola recorded on Friday. This marks one of the steepest single-day increases in recent times.
Similarly, silver prices have also risen. The price of silver increased by Rs 305 per tola, reaching Rs 5,345 per tola today, compared to Rs 5,040 per tola on Friday.
Experts attribute this drastic rise primarily to sharp gains in the international gold market. Global gold prices surged due to increased demand for safe-haven assets amid growing geopolitical tensions and economic uncertainties worldwide. Investors tend to shift toward gold during periods of instability, driving prices upward.
Another key factor behind the increase is the fluctuation in the US dollar. As gold is traded internationally in dollars, any weakening of the dollar or volatility in currency markets directly impacts gold prices in countries like Nepal. Additionally, rising inflation concerns in major economies have further boosted gold’s appeal as a hedge against inflation.
Market analysts also point to central banks increasing their gold reserves and continued uncertainty in global financial markets as contributing factors to the upward trend. These developments have pushed international prices higher, which is directly reflected in the domestic market.
Traders say that such a sharp increase may temporarily dampen consumer demand, especially in the absence of major festive seasons. However, investment demand is likely to remain strong as gold continues to be viewed as a safe and reliable asset.
The Federation updates gold and silver prices daily based on international trends and domestic demand-supply conditions. Further fluctuations are expected in the coming days depending on global market movements.
