KATHMANDU, Oct 15: Gold became dearer by Rs 8,100 per tola (11.6638 grams) on Tuesday, reaching yet another fresh record of Rs 248,500 per tola due to the soaring price of the precious yellow metal in the international market.
Tuesday’s hike was most likely the largest single-day price hike of the precious metal in the domestic market, according to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA).
The price of gold has been skyrocketing for the past few months. On the first day of the current fiscal year (July 17), the price of gold stood at 192,300 per tola. On August 29, the price crossed above Rs 200,000 for the first time.
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As per the FENEGOSIDA, the price of gold in the past one year has been affected by various factors including the decision of emerging countries like India and China to increase their gold reserves. Likewise, the depreciation of the Indian currency against the US dollar and growing concerns for BRICS currency also impacted the gold price.
Manik Ratna Shakya, immediate past president of the FENEGOSIDA, told Republica the recent crash in the price of cryptocurrencies has lured investors towards gold purchase. “In addition, a number of countries looking forward to increasing gold reserves to strengthen backing for their currencies have also impacted the gold price in the international market,” Shakya said.
According to Reuters, the price of late has been affected by the US-China trade tensions and the US Federal Reserve’s step to cut down the interest rate. In the past year, the US central bank reduced its interest rate by around 0.75 percent. In September 2024, the rate stood at five percent. The Federal Reserve last month cut its benchmark rate from 4.5 percent to 4.25 percent.
In the international market, gold surged past US $4,100 an ounce for the first time on Monday. “The price is buoyed by safe-haven buying as US-China trade tensions resurfaced and expectations of a Federal Reserve rate cut later this month further lifted demand.”
Gold surged above $4,000 an ounce on October 8. Bank of America Global Research has forecast that the price of the precious metal could cross $5,000 an ounce by the end of 2026, Reuters reported.
According to bullion traders, there has not been a drastic fall in the demand for gold despite the soaring price. “Fearing that the price could surge more in future, investors have been turning up to purchase gold even at the high price at present,” said Shakya.
Along with gold, silver also saw an increase, trading at Rs 3,325 per tola on Tuesday, up by Rs 105 compared to the previous day. Compared to the price of Rs 2,265 on the first day of FY 2025/26, the price of silver surged 1,060 per tola as of October 14.
