The price of gold dropped Rs 2,800 per tola in the domestic market of Nepal on Tuesday, November 5, after rallying to a record high last Thursday, October 31.
With the decline, fine gold is being traded at Rs 168,200 per tola (11.66 gram), according to the Federation of Nepal Gold and Silver Dealers’ Association (Fenegosida). Last Thursday, the price had surged to Rs 171,000 per tola, the highest ever in Nepal.
The record was set when preparations were in full swing for Tihar celebrations.
Amid the skyrocketing prices, bullion traders claimed that the business has slowed down of late.
Department of Customs’s statistics show that gold import has continued to decline this fiscal year. The country imported around 100 kg of gold worth Rs 1.04 billion in the first quarter of the current fiscal year, compared to around 900 kg worth Rs 7.35 billion in the same period last year.
Besides the soaring prices, traders claim cheaper prices in India due to the differences in customs rate to have caused the import of the precious yellow metal to fall in Nepal.
People living near the Nepal-India border prefer getting gold from the Indian markets, they argue, claiming that there is around Rs 20,000 price difference in a tola on both sides of the border.
Traders expect the upcoming marriage season to boost the bullion sales. The month of Mangsir, mid-November to mid-December is considered to be the best time of the year for marriage.
The bullion prices have been breaking records amid global uncertainties this year. In the international market, an ounce of gold has become dearer by 41 percent over the past 12 months, with its price rising from nearly $1,950 to $2,750.
Industry insiders have attributed the gold’s record-breaking spree to various international factors such as intensifying conflict in the Middle East, Russia-Ukraine war, interest rates cut by central banks in several countries and the US presidential elections. These events have driven investors toward the bullion as a safe haven, making it dearer than the dollar, they say.
The surge in prices follows widespread speculation across the globe that the yellow metal would cross $3,000 per ounce-mark in the near future.
If the international trend continues, the price in the domestic market could cross Rs 180,000 per tola-mark, Diyesh Ratna Shakya, senior vice-president of Fenegosida, had earlier told NBA. In that case, gold jewellery will cost nearly Rs 200,000 after the addition of the goldsmith and other fees.
Likewise, the price of silver also dropped on the day to Rs 2,030 per tola from Rs 2,090 last Thursday.
