The price of gold surged by Rs 800 per tola (11.66 grams) in the domestic market of Nepal on Wednesday.

According to the Federation of Nepal Gold and Silver Dealers Association, the price of fine gold has been set at Rs 160,800 per tola, up from Rs 160,000 in the previous day. This follows a three-day decline in prices.

Last week, gold prices set record highs for six consecutive days, with the price reaching Rs 161,200 per tola on Friday, September 27, the highest ever recorded in Nepal.

The surge in gold prices this year is attributed to global factors such as the intensifying conflict in the Middle East, the Russia-Ukraine war, and a 0.5 percentage point cut in US Federal Reserve interest rates, which has weakened the dollar.

The price of silver also increased on Wednesday to to Rs 1,935 from Rs 1,925 on Tuesday.