On Thursday, the price of gold in the Nepali market remained stable at Rs 236,300, while the price of silver increased moderately to Rs 2,980.
What you should know
The price of gold has been steadily declining in the global market for the past few days. The recent decline in the price of gold, which had previously risen at a high rate, is being viewed as a matter of concern.
Gold is being bought and sold in the Nepali market on Thursday at Rs 236,300 per tola. This price is the same as on Wednesday. Although there was no change in the price of gold on Thursday, gold is being bought and sold at the same price. On Asoj 16, gold was traded at Rs 258,000 per tola. In comparison, the price of gold has decreased by about eight and a half percent by Wednesday.
According to Tej Ratna Shakya, former president of the Nepal Gold and Silver Merchants Federation, this is the highest drop in the price of gold in such a short period of time in the last 17 years. Earlier, there was a high drop in a short period of time in 2066 BS.
In fact, since the price of gold has been falling in the world market in recent days, its impact has also been felt in the Nepali market.
There was a big drop in the price of gold in the world market on Kartik 4. Since then, the price of gold has not stopped falling.
There are various reasons for the current decline in the price of gold. According to experts, the price of gold in the world market has fallen due to a correction in the previously high price of gold, the US central bank's signal to raise interest rates, and improved relations between the US and China.
This year alone, the price of gold had increased by about 50 percent to $4,400 per ounce. It has since started to fall.
US President Donald Trump and Chinese President Xi Jinping are set to meet in South Korea after six years. The two leaders had not met since 2019. The two leaders, who had come to attend the Asia-Pacific Economic Cooperation (APEC) CEO Summit, are set to meet in Busan today. This has sent a big message to the world market.
When the two leaders met in 2019, Trump was nearing the end of his first term as president. He had started a trade war with China since the beginning of his first term. It was only after Joe Biden won the US presidency in 2020 that the trade war between the two countries seemed to have subsided somewhat.
However, since Trump was elected for a second term, this issue has become more complicated. The current trade war between the US and China is affecting global production and distribution cycles, affecting all economies, big and small, in the world. The upcoming meeting between the two leaders is expected to discuss this problem and find solutions. If the meeting is concluded positively as expected, it is predicted that trade between the US and China will improve. If that happens, the US dollar will strengthen and the price of gold will fall further.
Similarly, the price of gold in the international market had risen until some time ago due to the increase in the purchase and accumulation of gold by the world's central banks. Due to uncertainty in international trade and the ongoing conflicts in various countries, investors were considering gold as a safe investment. However, the price of gold has been continuously declining for the past few days. One reason for this is said to be signs of improvement in the trade war between the US and China.
The price of gold in the Nepali market remained stable on Thursday. The price of gold, which was fixed at Rs 236,300 per tola on Wednesday, remained the same on Thursday.
However, the price of silver has increased moderately. The price of silver, which was fixed at Rs 2,965 per tola on Wednesday, increased to Rs 2,980 per tola on Thursday, according to the Federation.
