Gold Imports Surge Despite Record-High Prices

Gold imports rose sharply in the first five months of the current fiscal year (FY 2025/26), despite record-high prices that traders say have dampened market demand.

Although higher prices typically reduce consumer purchases, official data show a significant increase in gold imports through formal channels during the period.

On Thursday, the price of hallmark gold climbed to Rs 267,500 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price was slightly lower than Wednesday’s all-time high of Rs 268,100 per tola. Gold prices in Nepal are determined largely by international market rates.

Data from the Department of Customs show that Nepal imported 944 kilograms of gold worth Rs 16.34 billion during the first five months of the fiscal year (mid-July to mid-December). In the same period last fiscal year, imports stood at 303 kilograms valued at Rs 3.35 billion.

In terms of volume, gold imports have increased by nearly threefold year-on-year, while the import value has risen by almost fivefold, reflecting the sharp rise in global and domestic prices.

Senior Vice-President of the Federation, Diyesh Ratna Shakya, said demand for gold remained strong in the market until the Tihar festival.

“Despite price fluctuations, there was a steady flow of buyers due to the festive season,” he said. “However, transactions have slowed considerably in recent weeks.”

The government reduced customs duty on gold imports from 20 percent to 10 percent in between mid-November and mid-December last year. According to Shakya, the earlier high duty had led to an abnormal decline in imports, and the recent surge was a natural outcome of the tax cut.

The Nepal Bankers’ Association said banks imported around 200 kilograms of gold ahead of Tihar in anticipation of higher demand during the festive season. An association official said that more than 150 kilograms of that imported gold remains in stock.

“The high import figures mainly reflect gold brought in for Dashain and Tihar,” a banker said. “At present, traders are taking no more than two to three kilograms a week.”

Bankers also say stricter monitoring has made it difficult to bring gold through informal channels, leading to higher imports through official routes.

“Since Nepal was placed on the grey list, regulatory scrutiny of gold trading has increased,” the banker said. “Illegally imported gold now carries a higher risk of remaining unsold.”

Former President of the Federation Manik Ratna Shakya said the rise in official imports could also reflect a decline in informal trade.

“In the past, a large volume of gold entered the country through unofficial channels, making formal imports appear low,” he said. “As illegal imports decline, the volume recorded through formal channels naturally increases.”