Himal Press 
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KATHMANDU: Gold prices in Nepal rebounded sharply on Wednesday, climbing back above the Rs 300,000 per tola level after several days of decline.
According to the Federation of Nepal Gold and Silver Dealers’ Associations, the price of fine gold rose by Rs 14,400 per tola on Wednesday to reach Rs 304,700. On Tuesday, gold had been trading at Rs 290,300 per tola.
Silver prices also increased. The federation said silver rose by Rs 265 per tola to Rs 5,600 on Wednesday, up from Rs 5,335 the previous day.
Gold had touched an all-time high of Rs 339,300 per tola on January 29. Although prices later dropped by around 15% amid a correction in the international market, they have started to pick up again in recent days.
Internationally, spot gold gained 2.7 percent to $5,071.79 per ounce as of 0353 GMT on Wednesday, after surging 5.9 percent on Tuesday—its biggest single-day gain since November 2008. The metal had scaled a historic high of $5,594.82 per ounce last Thursday.
According to Reuters, renewed geopolitical tensions between the United States and Iran have fueled fresh safe-haven demand, pushing prices higher once again.
Nepal meets all of its gold demand through imports. As a result, any fluctuation in international prices is directly reflected in the domestic market.
Traders say local prices are likely to remain volatile in the coming days, depending on global developments and movements in the US dollar.
