Gold Prices Break Record in Nepal Amid Global Trade and Monetary Shifts

Gold prices in Nepal have once again reached an all-time high, continuing a trend of daily increases seen throughout the past week. The consistent rise reflects not only local demand but also growing global uncertainties that are driving investors toward safe-haven assets.

According to the Nepal Gold and Silver Dealers’ Association, hallmark gold was traded at Rs. 212,000 per tola on Sunday. This is the highest price ever recorded in Nepal. Compared to Friday’s rate of Rs. 210,400 per tola, gold prices rose by Rs. 1,600 in a single day.

Silver also climbed to a record level. Its price increased by Rs. 10 per tola, reaching Rs. 2,500 per tola, up from Rs. 2,490 per tola on Friday. The simultaneous rise of both metals highlights the strength of investor demand for precious commodities.

Global developments are largely responsible for the bullish momentum. In the United States, President Donald Trump has raised tariffs on goods from more than 90 countries. This move has disrupted international supply chains and weakened diplomatic relations, increasing fears of prolonged trade conflicts.

In the United Kingdom, the Bank of England has reduced its benchmark interest rate by 0.25 percentage points, bringing it down from 4.25 percent to 4 percent. Lower interest rates make gold relatively more attractive as an investment, since the opportunity cost of holding non-yielding assets decreases.

These international shifts have had direct effects on Nepal’s domestic market. Investors are responding to global signals by turning to gold, viewing it as a hedge against inflation and financial instability. The price surge comes just ahead of Nepal’s festival and wedding season, a period traditionally marked by high jewelry demand.

While higher prices benefit investors and traders who already hold gold, ordinary consumers may feel the pressure. Families preparing for festivals or weddings could reduce their jewelry purchases, or opt for silver instead. This may soften retail demand, even as overall investment demand continues to grow.

Economists also warn of broader implications for Nepal’s external sector. Rising gold imports could worsen the trade deficit and strain foreign currency reserves, making it more difficult for the country to manage balance-of-payment pressures.

In the short term, as long as global trade tensions persist and central banks maintain accommodative policies, gold prices are expected to remain elevated. In the medium term, any escalation in trade conflicts or monetary easing could push prices even higher.

The new record in Nepal’s bullion market is therefore more than a domestic story. It is a reflection of global instability, shifting monetary policies, and investor caution. For Nepal, the challenge lies in balancing cultural demand for gold with the economic realities of rising imports and higher costs for ordinary households.