The precious metals market in Nepal witnessed a substantial drop in prices on May 23, with gold experiencing a significant decline of Rs 1,800 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of fine gold has been set at Rs 138,700 per tola, while tejabi (standard) gold is currently trading at Rs 138,050 per tola.
Previous Rates:
On May 21, the price of fine gold stood at Rs 140,500 per tola, and tejabi gold was priced at Rs 139,800 per tola, indicating a notable adjustment in the rates within a span of two days.
Silver Price Decline:
In addition to the fall in gold prices, the silver market also experienced a downturn, with the price declining by Rs 35 to Rs 1,865 per tola on May 23.
Market Volatility:
The fluctuations in precious metal prices reflect the volatility inherent in the global bullion market, which is influenced by various factors such as international demand, supply dynamics, currency exchange rates, and geopolitical events.
Impact on Consumers and Businesses:
The decrease in gold and silver prices can have implications for both consumers and businesses in Nepal. For consumers seeking to invest in precious metals or purchase jewelry, the lower prices may present an attractive opportunity. However, for businesses involved in the bullion trade, such as jewelers and dealers, the price adjustment may impact profitability and necessitate strategic adjustments.
Economic Indicators:
Precious metal prices are often closely monitored as economic indicators, reflecting global market sentiments, investor confidence, and economic conditions. The decline in gold and silver rates in Nepal could potentially provide insights into broader economic trends and serve as a reference point for financial decision-making.
Regulatory Oversight:
The Federation of Nepal Gold and Silver Dealers’ Association plays a crucial role in regulating and overseeing the bullion market in the country. By setting and announcing the daily prices, the association aims to maintain transparency and ensure fair trade practices within the industry.
