KATHMANDU, JANUARY 30 — Gold prices in the domestic market declined on Friday after reaching a historic high a day earlier, according to the Federation of Nepal Gold and Silver Dealers’ Association. Notably, gold, which had surged by **Rs 20,500 per tola on Thursday to a record Rs 339,300, fell by the same margin on Friday to Rs 313,800 per tola, returning close to Wednesday’s levels.
The sharp correction comes just a day after gold hit unprecedented rates in Nepal, reflecting a volatile bullion market. On Wednesday, the price of gold had itself set a record following a Rs 9,500 per tola increase as it climbed to Rs 318,800 per tola.
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Silver prices also eased, though the drop was more moderate. After climbing to around Rs 7,300 per tola on Thursday, silver declined by Rs 235 per tola on Friday and was traded at approximately Rs 7,065 per tola, the association said.
Market analysts attribute the reversal in precious metal prices to a mix of profit-taking by investors, short-term market corrections, and shifts in international commodity trends. While global gold prices had pushed domestic rates higher earlier in the week, a slight pullback in international bullion markets and renewed selling pressure tempered the rally. Europe and Asian markets saw some softening in gold futures prices, which influenced local dealers and traders.
Despite Friday’s decline, gold remains significantly above early-week levels, and overall demand for the metal continues to be driven by concerns over economic uncertainty, inflationary pressures, and a weakening Nepali rupee — factors that traditionally support gold as a safe-haven asset. Experts warn that prices are likely to stay volatile in the near term, with potential for renewed gains if international tensions and market risk aversion rise again.
Consumers and traders are watching closely, as sharp price swings have made gold purchasing decisions more challenging, particularly for households planning weddings and investments tied to traditional savings in Nepal. Some buyers are postponing purchases, hoping for further corrections, while others are keeping a close eye on international market cues and currency movements.
