Gold prices have been setting new records in recent days. From last sunday to friday, the price of gold in Nepal increased by Rs. 3,800 per tola. On Sunday, gold was priced at Rs. 212,000 per tola, and by Friday, it had reached Rs. 215,800.
In the international market, the price of gold has also climbed. Today, it stands at $3,631.89 per ounce, and experts expect it could rise soon . However, the rising cost has slowed down gold sales in Nepal. According to former president of the Federation of Gold and Silver Dealers’ Association, Tej Ratna Shakya, the market has become quiet because of high prices.
In Nepal, the official price of gold is Rs. 205,300 per tola, but buyers must also pay a 2% luxury tax. This raises the cost to around Rs. 210,000. On top of that, labor charges and jewelry-making costs are added, pushing the final price to between Rs. 215,000 and Rs. 220,000 per tola. In the past 12 months alone, gold prices in the international market have risen by about 30%.
One major reason for this rise is global trade policies. Former US president Donald Trump increased tariffs on several countries, raising taxes by 10% to 50%. Many nations saw this as risky and harmful to global trade. As a result, people started buying more gold, which pushed prices higher.
The weak Nepali currency has also added to the problem. The Nepali rupee has been falling against the US dollar. In April, one dollar was worth Rs. 136, but by mid-September, it had risen to Rs. 140.95. A stronger dollar makes imports, including gold, more expensive for Nepal.
Other global factors are also at play. The Russia-Ukraine war, tensions in the Middle East, and supply chain disruptions in Asia have all increased uncertainty. This has made gold more attractive worldwide, and the effects are being felt in Nepal too.
International financial institutions have also shared predictions. Bank of America has estimated that by mid-2026, the price of gold could reach $4,000 per ounce. They say political uncertainty, central bank decisions, and ongoing global conflicts will continue to drive the price upward.
Falling interest rates are another reason. Countries like the UK have lowered deposit rates, and the US Federal Reserve may do the same. Lower rates make gold a more appealing investment compared to savings.
Central banks in countries such as China and Poland are also buying large amounts of gold. By mid-2025, global gold holdings reached more than 3,600 tons. This shows that many countries are treating gold as a safe asset, reducing supply in the market and pushing prices higher.
Gold prices are also affected by inflation and the strength of the US dollar. When inflation rises, people prefer investing in gold rather than holding cash. Usually, when the dollar weakens, gold prices increase, since it becomes cheaper for other currencies.
Overall, a mix of trade policies, currency weakness, global conflicts, central bank buying, and interest rate changes has caused gold prices to rise sharply, both in Nepal and around the world.
