Gold prices in the Nepali market experienced a significant drop today, Sunday, November 1, 2026, falling by Rs 8,300 per tola. The precious yellow metal is now trading at Rs 272,000 per tola, according to the Nepal Federation of Gold and Silver Dealers (NFGSD), the association that sets and manages gold and silver trading prices in Nepal.This sharp decline follows Friday’s trading price of Rs 280,300 per tola. Silver prices also decreased, with a fall of Rs 175 per tola, bringing the current trading price to Rs 3,650 per tola. On Friday, silver was traded at Rs 3,825 per tola.The price of gold in Nepal is influenced by international market rates, customs duties, bank costs and profits, foreign exchange rates, and dealer profits. Currently, gold is trading at USD 3,996 per ounce in the international market.Expectations regarding the monetary policy of the US central bank, the Federal Reserve, have put downward pressure on global gold prices. Concerns that rising energy prices could lead to prolonged inflation have increased the likelihood of the Federal Reserve maintaining or raising interest rates, which typically makes non-yielding assets like gold less attractive.Additionally, high yields on US government bonds have also contributed to the downward pressure on gold prices. Some sources also suggest that the ongoing conflict between the United States and Israel against Iran, which began in late February, has impacted gold prices.While the exact impact on consumer purchasing power is not yet clear, the decline in gold prices during the festive season is expected to offer some relief to consumers. Nepal Rastra Bank, the central bank of Nepal, sets the procedures and policies related to gold and silver transactions.Historically, both increases and decreases in gold imports have been observed in response to price fluctuations. When prices rise, imports tend to decrease, and when prices fall, imports tend to increase. However, the specific effect of the current price drop on imports remains to be seen.
Background
- The price of gold in Nepal is determined by a combination of international market rates, customs duties, bank costs and profits, foreign exchange rates, and dealer profits.
- Expectations regarding the monetary policy of the US central bank, the Federal Reserve, have put downward pressure on global gold prices.
- Concerns that rising energy prices could lead to prolonged inflation have increased the likelihood of the Federal Reserve maintaining or raising interest rates.
- High yields on US government bonds have also contributed to the downward pressure on gold prices.
