The price of gold in Nepal has dropped by Rs 600 per tola in the domestic market today. This decline has caught the attention of traders and buyers, as gold prices have been fluctuating in recent weeks.
Current Gold and Silver Prices
According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the price of hallmark gold is now set at Rs 179,100 per tola. On Tuesday, the price stood at Rs 179,700 per tola, indicating a noticeable drop.
Along with gold, silver prices have also fallen. Silver is now priced at Rs 2,020 per tola, down by Rs 15 from Tuesday’s price of Rs 2,035 per tola. This decline in precious metal prices has sparked discussions in the financial market.
Reasons Behind the Price Drop
Several factors contribute to the falling gold prices in Nepal. One of the main reasons is the international market trend. Gold prices are influenced by global demand, geopolitical events, and fluctuations in the US dollar. When international prices fall, Nepal’s gold market follows the trend.
Another key factor is supply and demand within Nepal. Festivals, weddings, and economic conditions play a big role in determining gold prices. When demand is low, prices tend to decrease.
The Nepal Rastra Bank’s policy on gold imports also affects pricing. If the central bank increases the import quota, the supply of gold rises, leading to lower prices. However, if the quota is restricted, prices may rise due to limited supply.
Impact on Buyers and Sellers
The drop in gold prices is seen as an opportunity for buyers. Many people in Nepal purchase gold for investment, weddings, and religious purposes. With the price decrease, gold buyers may take advantage of the situation to make new purchases.
For gold traders and jewelers, a price drop can mean lower profit margins. Jewelers often adjust their pricing strategies based on the fluctuations. If prices continue to fall, some traders may hold onto their stock, hoping for a rise in value later.
Silver traders are also affected by this price change. As silver prices have dropped, investors may look into purchasing silver as an alternative to gold.
Recent Trends in Gold Prices
Gold prices in Nepal have seen many ups and downs in recent months. Economic uncertainty, inflation, and changes in global gold production all impact pricing. The US Federal Reserve’s interest rate policies also play a role. When interest rates rise, gold prices often drop because investors prefer to put money into interest-yielding assets instead of gold.
Nepal’s gold market remains closely linked to international prices. Any major changes in global gold prices are reflected in the domestic market. The current decline may be temporary, and prices could fluctuate again based on future economic conditions.
Experts predict that gold prices will continue to see variations based on international trends and local market conditions. If the global economy remains unstable, gold could regain its value. However, if inflation is controlled and interest rates remain high, gold prices may stay lower for a while.
For now, Nepali gold buyers have a chance to purchase gold at a reduced rate. Investors should stay updated on price changes and make informed decisions.
