Gold Price Surge

Gold symbolises beauty, wealth, and power, and has played a central role in civilisations' histories and worldwide monetary systems. Because of its physical uniqueness and enduring value, gold has been regarded as a store of wealth. The more gold one possesses, the richer one is perceived to be. Gold has also been a popular investment option, particularly during times of crisis such as wars and market downturns. 

While gold is primarily used in the production of jewellery and ornaments, governments, institutions, and individuals alike adopt gold as a hedge against inflation, economic instability, and uncertainty.  In Nepal, gold is deeply embedded in history, culture, and daily life. Many of the temples standing in Kathmandu are adorned with gold, and the extensive use of gold in temples built during the Lichchhavi and Malla periods reflects Nepal's prosperity at that time. The Lichchhavi period itself is often referred to as a golden era in Nepal's history. This precious yellow metal is also indispensable in Hindu rituals, from birth to death, with the highest usage during weddings.  

However, in recent years, gold has moved beyond the reach of common people, as prices have skyrocketed. In just three years, the price of gold in Nepal has surged by nearly Rs. 200,000 per tola. According to a news report published in this daily the other day, gold was traded at Rs. 301,400 per tola, which is the highest price ever recorded in the country. Gold prices, which began rising steadily after the global financial crisis of 2008, accelerated sharply following the COVID-19 pandemic due to sustained high demand.  

In January 2023, gold was priced at Rs. 106,000 per tola. It rose to Rs. 118, 400 in January 2024, jumped to Rs. 160,000 per tola in 2025, and now has crossed Rs. 300,000 per tola. In the international market, the gold price reached a record high--USD 4,800 per ounce on Friday. A sharp rise in gold prices is not a good sign for the economy. It often reflects economic uncertainty, political tension, and market downturn. Cuts in bank interest also push investors towards gold, giving central banks a significant role in price movements. 

Global central banks, such as the Federal Reserve, Bank of England, and European Central Bank, are estimated to hold roughly a fifth of all the gold ever mined. Major economies like Russia, China, and India frequently increase their gold reserves, as holding large amounts of currency carries risks.  When currencies depreciate, the value of reserves also declines. Amid rising geopolitical tensions, ranging from the Russia-Ukraine war to growing global power rivalries, gold prices have surged globally, affecting small economies like Nepal as well. 

The unprecedented price rise has reduced gold trade in the domestic market, hurting traders and their employees.  Since gold is essential for marriages, the price rise has also placed a heavy burden on ordinary citizens.