Gold resumed its record-breaking rally in the domestic market of Nepal on Sunday, October 27. 

The price of fine gold rose Rs 1,400 in a tola (11.66 gram) to reach a new high at Rs 167,400 per tola, according to the Federation of Nepal Gold and Silver Dealers' Association.  

The bullion prices, which have been breaking records amid global uncertainties this year, fell in Nepal for the first time in more than week last Thursday, October 24, to Rs 166,000 from Rs 166,700 per tola the previous day. On Friday, the price remained unchanged. Every Saturday, gold and silver are traded in Nepal at the same price set on the previous day.

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 the Federation of Nepal Gold and Silver Dealers Association, had remarked a month ago. 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 increased on the day to Rs 2,085 per tola, up by Rs 15 from that on last Friday.