The domestic bullion market witnessed a significant surge in gold prices today, with the yellow metal jumping by Rs. 1,600 per tola. This sharp increase follows a period of high volatility in international markets, driven by renewed geopolitical tensions and fluctuating currency rates.
Today’s Market Rates
According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the new rates for the local market are as follows:
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Hallmark Gold: Priced at Rs. 301,300 per tola, up from yesterday’s closing rate of Rs. 299,700.
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Tejabi Gold: Currently trading at Rs. 299,850 per tola.
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Silver: In contrast to the rising gold trend, silver prices saw a minor correction, dropping by Rs. 30 per tola to trade at Rs. 5,160.
Factors Driving the Hike
Market analysts attribute the Rs. 1,600 hike primarily to the surge in international spot gold prices. As global investors seek “safe-haven” assets amid economic uncertainty in the Middle East and shifting interest rate projections in the U.S., the demand for gold has intensified. Locally, the appreciation of the US Dollar against the Nepali Rupee has further inflated the cost of importing the precious metal.
Impact on Consumers
The crossing of the Rs. 300,000 threshold for the second time this quarter has caused a noticeable slowdown in retail demand. Many consumers, particularly those planning for the upcoming wedding season, are adopting a “wait and watch” strategy.
“The sudden spike of sixteen hundred rupees in a single day is a major deterrent for individual buyers,” noted a local jeweler in New Road. “While gold remains a preferred investment, the current price levels are testing the limits of the domestic market’s purchasing power.”
Trading remains cautious as investors keep a close eye on the second round of international negotiations in Islamabad, which are expected to influence global commodity trends throughout the week.