Gold Imports Surge 199% in Ashoj; Is It the Right Time to Buy?
Gold imports in Nepal jumped 199% in Ashoj, reaching 400 kg as prices hit record highs. Analysts advise caution as short-term correction follows.
Gold prices in Nepal saw a record surge in Ashoj, with the price per tola reaching NPR 258,000 on October 31 — the highest ever recorded in the domestic market. The rapid increase over the month reflects a gain of NPR 42,800 from the last day of Bhadra, when prices stood at NPR 215,200 per tola.
Rising prices triggered a surge in demand. During Sawan and Bhadra, low consumption kept imports limited — only 200 kg were brought in by commercial banks. In Ashoj, banks responded to rising demand by boosting imports by 199%, totaling 400 kg, according to the Department of Customs. Over the last three months, 601 kg of gold entered Nepal, with Ashoj accounting for the highest monthly import in the current fiscal year.
However, following the record highs, gold prices began to correct, falling to NPR 241,900 per tola as of early Kartik — a 6.24% drop or NPR 16,100. Analysts attribute the decline to sharp corrections in international gold markets and profit-taking by domestic investors, who have rotated funds back into equities.
Additional factors influencing the correction include easing geopolitical tensions, a stronger US dollar, and reduced uncertainty in US monetary policy. Despite the short-term drop, experts maintain that the broader upward trend remains intact, noting that the gold rally earlier this year saw prices increase over 65%, driven by war fears, global economic slowdown, and central bank purchases.
Looking ahead, short-term demand may remain muted unless the US Federal Reserve cuts interest rates as expected at month-end. Analysts advise investors with a long-term horizon to remain patient, as the recent dip represents a temporary pause rather than a reversal in gold’s bullish trend.