On Monday, the price has been increased by Rs 2500 per tola to Rs 233 thousand 100. This price is also a record so far.
What you should know
New records have been set in the gold market that opened after Dasain. Before the Dasain holiday, on October 12, the Nepal Gold and Silver Traders Federation fixed the price of gold at 223,200 rupees per tola.
Then came the Dasain holiday. Until August 18, the Union did not fix the price of gold. When the jewelry market opens on October 19, right after Dasain, the prices have skyrocketed. The price of gold rose by Rs 7,400 to Rs 2,30,600 per tola on the same day.
On the second day i.e. October 20, the price of gold continued to rise. The federation has increased the price by 2500 rupees per tola on Monday as compared to Sunday and set the price at 233 thousand 100 rupees. This price is also a record so far.
'Jewelry market was completely unstable. The ups and downs in the international market have made the Nepali gold market boom. The price increase in the international market has had a direct impact," said jeweler Tejaratna Shakya, "Gold was not sold during Dasain. Tihar is near. But due to the abnormal price increase, Nepalis are not able to buy gold.'
On October 12, when the Federation determined the price of gold, the price of gold per ounce in the international market was 3,760 US dollars. On October 19, the price of gold per ounce in the international market rose to 3,887 US dollars. He said that the increase of USD 127 per ounce in a week had a direct impact on the Nepali market.
On October 20, prices continued to rise in the international market. The price of gold in the international market was 3,931 US dollars per ounce when the federation set the price on Monday. 2 lakh 33 thousand 100 rupees per tola in Nepali market. The federation determines the prices by considering the international market as 75 percent and the Indian market as 25 percent.
The market price is determined by international market price, dollar exchange rate, customs rate and 1 percent profit (50 percent to the bank and 50 percent to the businessman). IC has also become weak compared to the US dollar. That has also increased the price," Shakya said. "Looking at the trend of the international market, it seems that the price will increase further. The price of gold has reached close to 4,000 US dollars per ounce, if it exceeds 4,000 dollars, it may fall to 2.5 lakh per tola in the Nepali market.
The World Gold Council has predicted that the price of gold will reach 4,000 dollars per ounce. He expects the price to rise to $4,000 by December. That's why the price seems to have increased. Due to the policy of the American Central Bank (Federal Reserve Bank), investment in gold has also increased. The bank has reduced the interest rate from 4 to 4.25. It seems that US President Donald Trump's administration is pushing to reduce interest rates even more. But the central bank has not agreed," said Shakya, a jeweler. "The dollar is also weak. The price increased because investors increased their investment in gold rather than dollars.
The price of gold increased due to the central bank's interest rate cut, said Diyash Shakya, the senior vice president of the federation. In this same September, the US central bank, the Federal Reserve, reduced the interest rate by 0.25 percent to 4 to 4.25 percent as expected. The interest rate has been reduced to face this challenge after the US inflation has increased by 2.90 percent and the unemployment rate has increased,' he said, 'experts have predicted that the interest rate will decrease again in the near future.' According to Diyash, investors are attracted to gold for high returns due to falling interest rates.
Another reason for the increase in the price of gold is geopolitical, he said. He said that in the war between Russia-Ukraine and Israel-Palestine, the addition of Lebanon, Yemen, Iran and the signs of prolonging the war have also increased the insecurity. That's why the investment was made in gold. According to the World Gold Council, the world's central banks have bought 1,450 tons of gold in 2024. For a few years, central banks have been buying and stockpiling around 1,000 tons of gold every year. This has also helped to increase the demand for gold and increase its price.
