KATHMANDU, Sept 21: The price of gold surged by Rs 59,800 per tola (11.6638 grams) in the domestic market of Nepal over the past one year, due to the soaring price of the precious metal in the international market.
The records with the Federation of Nepal Gold and Silver Dealers Association (FENEGOSIDA) show that the price of one tola of gold was set at Rs 157,300 a tola in mid-September last year. The price reached a historic high at Rs 217,100 per tola last Tuesday.
As per the federation, the price of gold in Nepal was impacted by multiple factors during the review period. These included fluctuation of prices in the international market, bulk demand by the governments of a number of countries, the Government of Nepal increasing the taxes on gold import and depreciation of Nepali currency against the US dollar.
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Kiran Bhai Bajracharya, general secretary of the FENEGOSIDA, attributed the soaring price of gold to the fluctuation of the price of the US dollar and the price of the precious yellow metal in the international market.
“China has started increasing its gold reserves while the Indian rupee has been depreciating after the US President announced to impose a 50 percent tariff on imports from India. As a result, the Nepali currency has also weakened and that has impacted the gold price in the domestic market,” said Bajracharya.
The records with Nepal Rastra Bank (NRB) show that the price of US dollar against Nepali currency reached as high as Rs 141.55 in mid-September this year. In the same period last year, the exchange rate stood at Rs 133.80 per dollar. It shows that the Nepali currency has depreciated by an average of Rs 8 per dollar in a year.
As per the FENEGOSIDA, the gold price increased by around Rs 23,000 per tola just in the past one month. On August 21 of FY 2025/26, the price was recorded at Rs 194,800. On August 29, the price crossed Rs 200,000 per tola for the first time in the domestic market.
International media reports that the US Federal Reserve’s decision to cut interest rates has also impacted the price of gold in the international market. “After the US central bank decided to cut the interest rate by 25 basis points to a range of 4-4.25 percent, spot gold quickly surged to $3707.40 per ounce, setting a new all-time high,” reports Reuters, adding that surged demand for gold in India also impacted the price.
“Physical gold premiums in India rose to a 10-month high this week as record prices near a festive season failed to deter investors from buying bullion in anticipation of further gains,” Reuters said.
