Himal Press 
Representative Image (Photo: Pexels)
KATHMANDU: The price of gold surged to a record high of Rs 174,500 per tola (11.66 grams) in the domestic market on Friday, marking an increase of Rs 4,000 per tola compared to Thursday’s rate.
Officials of the Federation of Nepal Gold and Silver Dealers Association (Fenegosida) told RSS news agency that the strengthening of the US dollar and ongoing international political instability have been key drivers behind the price hike.
The price of silver also climbed to Rs 2,050 per tola on Friday.
Gold prices plummeted by Rs 15,900 per tola to Rs 151,300 on November 25 following the government’s decision to reduce the customs duty on gold imports from 20% to 10%. Just a day earlier, on November 24, gold had been trading at Rs 167,200 per tola. The government revised the duty downwards in response to India’s move to lower its gold import duty from 15% to 6%.
The government had raised the customs duty on gold from 15% to 20% in mid-July last year through the budget speech for the current fiscal year.
Despite the duty revision, gold price has now reached the levels seen in November last year. Gold prices have been on an upward trajectory in the international market. On Thursday, gold hit an all-time high of 89,450 Indian rupees per 10 grams in India. Similarly, gold reached a record high in the international market, nearing the $3,000 mark, fueled by fears of an ongoing trade war and expectations of a rate cut by the U.S. Federal Reserve, as reported by Reuters.
Gold has long been considered a safe-haven asset during periods of economic uncertainty and geopolitical tension. Recent reports indicate that central banks worldwide are increasing their gold reserves, diversifying away from dollar-dominated assets amid concerns over monetary policies and potential interest rate changes. This growing demand has driven international gold prices higher. Since Nepal meets all its gold demand through imports, global trends directly affects prices in the local market.
The current price surge is further supported by a volatile global economic climate, including fluctuations in equity markets and anticipation of policy shifts in major economies like the United States.
