KATHMANDU: Gold prices fell by Rs 6,500 per tola on Monday, continuing a sharp downward trend in the domestic market.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold has been fixed at Rs 275,500 per tola for the day.
The decline follows an even steeper drop of Rs 12,500 recorded on Sunday, with gold trading at Rs 282,000 per tola.
Within a week, gold prices have fallen by Rs 34,000 per tola. Just last Monday, the precious metal was trading at Rs 309,500 per tola.
Analysts attribute the recent decline to global market dynamics, particularly rising demand for the US dollar amid escalating tensions in West Asia, which has driven up oil prices.
As countries require more dollars to import expensive oil, increased dollar demand has put pressure on gold prices, with investors reportedly selling gold to secure dollar liquidity.
Rising oil prices have also fueled inflationary pressures globally, prompting expectations of higher interest rates, which typically weigh on gold and silver prices.
Meanwhile, silver prices also declined by Rs 115 per tola on Monday. The metal, which traded at Rs 4,540 per tola on Sunday, has dropped to Rs 4,425 per tola.
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