KATHMANDU – The price of gold in the local market has been on an unprecedented, non-stop upward trajectory, recording a massive cumulative gain of approximately Rs. 16,000 per tola over just five consecutive trading days. The yellow metal is now perilously close to the quarter-million-rupee mark, setting new all-time records daily.
The consistent surge is a direct reflection of escalating prices in the international bullion market, fueled by global economic uncertainty.
Daily Price Breakdown: Gold’s Record-Breaking Climb
According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the price of fine gold saw another sharp increase on Thursday, making it the fifth straight day of gains.
| Day | Daily Price Hike (Per Tola) | Fine Gold Price (Approx.) |
| Sunday | Rs. 7,400 | Rs. 2,30,600 |
| Monday | Rs. 2,500 | Rs. 2,33,100 |
| Tuesday | Rs. 2,300 | Rs. 2,35,400 |
| Wednesday | Rs. 2,600 | Rs. 2,38,000 |
| Thursday | Rs. 1,200 | Rs. 2,39,200 |
| 5-Day Total | ~Rs. 16,000 | Record High |
On Thursday, the price of Fine Gold (Chapawal) increased by Rs. 1,200 per tola compared to Wednesday, setting the new rate at Rs. 2,39,200.
- Yesterday (Wednesday), the price was Rs. 2,38,000 per tola.
Silver Also on the Rise
The surge in the precious metals market isn’t limited to gold. Silver prices have also witnessed a significant jump:
- Thursday’s Price: Silver is now trading at Rs. 3,025 per tola.
- Increase: This marks a rise of Rs. 70 per tola from its Wednesday rate of Rs. 2,955.
The Global Drivers Behind Nepal’s Soaring Prices
The primary factor driving the gold price in Nepal is the turbulence in the international market. Since gold is pegged to the US Dollar and its price movements are determined globally, any increase overseas is directly reflected in the local market (after accounting for the Nepali Rupee-USD exchange rate).
- Safe-Haven Demand: Escalating geopolitical tensions (such as conflicts and instability) and fears of a global economic slowdown are pushing major international investors to flock to gold, traditionally viewed as the ultimate safe-haven asset.
- Central Bank Activity: Aggressive buying of gold by central banks around the world to diversify their reserves away from the US dollar is tightening global supply and adding upward pressure on prices.
- Inflation Hedge: With global inflation remaining a concern, gold is being used as a critical hedge against the declining purchasing power of fiat currencies.
Impact on the Domestic Market and Consumers
The relentless price hike poses significant challenges for the Nepali market, especially with the festive and wedding season approaching, which is traditionally a peak period for gold demand:
- Buyer Hesitation: Consumers are showing high resistance to current prices, leading to a sharp drop in retail sales. Many families may be forced to drastically reduce their jewelry purchases for upcoming events like Tihar and weddings, or switch to more affordable alternatives.
- Trade Deficit Concern: As Nepal imports virtually all its gold, the continuous price rise means the country has to spend a much larger amount of foreign currency for the same quantity of gold, further straining the national foreign exchange reserves and exacerbating the trade deficit.
- Investment vs. Consumption: While high prices benefit those who hold gold as an investment, the cost to the average consumer who needs it for cultural or celebratory purposes is now at an all-time high.
Do you think the government should intervene in gold imports during this historic price surge, or should the market be allowed to correct itself?