Why Gold Prices Are Hitting Record Highs Daily in Nepal

Gold prices in Nepal continue to surge to fresh highs, with rates climbing almost daily. On Sunday, October 5 (Ashwin 5), the price of fine gold rose by Rs. 1,100 per tola to Rs. 217,100, compared to Friday’s Rs. 216,000.

Despite the festival season typically fueling demand for jewelry, traders say sales have slowed. Prices have reached levels unaffordable for many buyers, leading to a decline in transaction volumes even as values soar.

Globally, gold is widely seen as a safe-haven asset, linked to currency fluctuations and geopolitical risk. In Nepal, gold is also deeply tied to social and cultural traditions, playing a central role in weddings, rituals, and festivals such as Dashain and Tihar.

Manik Ratna Shakya, former president of the Federation of Nepal Gold and Silver Dealers’ Association, points to three major drivers behind the rally: ongoing wars across multiple countries, U.S. trade tariffs and protectionist policies, and a global shift away from reliance on the U.S. dollar as the sole reserve currency.

He noted that some nations are stockpiling gold reserves at record levels, further tightening supply. “The chances of gold prices falling in the near term are very slim. On the contrary, the upward trend is more likely to continue,” Shakya said.

This paradox — record-high prices amid weak trading activity — has left the market in a rare position, where gold retains its status as a store of value and hedge against volatility but remains beyond the reach of everyday consumers.