Gold (Hallmark)

Scope: Nepal retail gold market, Hallmark per-tola rate

Summary

Gold prices in Nepal saw a minor dip of Rs 200 today, settling at Rs 310,900 per tola. This small correction comes after yesterday's unprecedented surge, which pushed prices significantly higher than a week ago and marked a substantial shift in the market.

Recent moves

01/06down Rs 200 to Rs 310,900 — tracking global trends

31/05up Rs 20,500 to Rs 311,100 — significant surge, tracking global trends and stronger US dollar

28/05down Rs 5,500 to Rs 285,000 — significant drop despite stronger US dollar

27/05down Rs 1,000 to Rs 290,500 — tracking global trends

26/05down Rs 1,300 to Rs 291,500 — tracking global trends

25/05up Rs 1,900 to Rs 292,800 — no specific local news, tracking global trends

24/05down Rs 2,800 to Rs 290,900 — tracking global trends

20/05down Rs 3,300 to Rs 292,000 — tracking global trends

19/05up Rs 500 to Rs 295,300 — tracking global trends and stronger US dollar

18/05up Rs 800 to Rs 294,800 — tracking global trends and a slight local rebound

17/05down Rs 4,500 to Rs 294,000 — tracking global trends and significant local drop

14/05up Rs 300 to Rs 302,500 — tracking global trends and stronger US dollar

13/05down Rs 700 to Rs 302,200 — tracking global trends and local reports of slight decrease

12/05up Rs 4,400 to Rs 302,900 — significant surge, tracking global trends and local reports

11/05down Rs 400 to Rs 298,500 — tracking global trends and local reports of price decrease

10/05down Rs 1,000 to Rs 298,900 — tracking global trends and local reports of price decrease

07/05up Rs 1,800 to Rs 298,600 — continuing yesterday's surge, tracking global trends

06/05up Rs 5,800 to Rs 296,800 — significant local surge, possibly tracking global trends and dollar weakness

05/05down Rs 3,800 to Rs 291,000 — tracking global movements

04/05down Rs 300 to Rs 294,800 — tracking global movements

Context

Gold prices in Nepal are heavily influenced by global spot gold prices and the strength of the US dollar against the Nepali Rupee. A decrease in the US dollar's exchange rate can contribute to the local gold price drop. Additionally, recent calls from the Indian Prime Minister for citizens to avoid buying gold for a year, citing supply chain issues, could potentially influence regional gold demand and prices, including in Nepal. Additionally, India's recent increase in import duty on gold and silver from 6% to 15% to curb imports and conserve foreign exchange could influence regional gold demand and prices, including in Nepal. Furthermore, falling interest rates on fixed deposits below inflation rates in Nepal could make gold a more attractive alternative investment. Recently, India has also tightened silver imports, restricting silver bars which were previously free, to further control spending and conserve foreign currency, which could have broader implications for precious metals in the region. Additionally, Nepal recently removed the luxury tax on gold jewelry, replacing it with a 0.5% skill development fee, which could also influence local market dynamics.