Gold and Silver Prices Retreat in Nepal, Precious Metals Market Sees Fresh Correction

Key Highlights

• Gold prices fell by Rs 2,100 per tola on June 5.
• Fine gold is trading at Rs 309,000 per tola.
• Gold was priced at Rs 311,100 per tola on the previous day.
• Silver prices declined by Rs 55 per tola.
• Silver is currently trading at Rs 5,230 per tola.
• The white metal was priced at Rs 5,285 per tola on Thursday.
• The latest rates were released by the Federation of Nepal Gold and Silver Dealers’ Association.

KATHMANDU, June 5 — Precious metal prices witnessed a notable decline in Nepal’s domestic market on Friday, with both gold and silver recording losses compared to the previous trading session. The latest rates published by the Federation of Nepal Gold and Silver Dealers’ Association indicate a continued correction in the local bullion market amid fluctuations in international precious metal prices and changing investor sentiment.

According to the association, the price of fine gold dropped by Rs 2,100 per tola on June 5. As a result, fine gold is being traded at Rs 309,000 per tola, compared with Rs 311,100 per tola recorded on Thursday. The decline marks one of the more significant single-day price adjustments in recent sessions and reflects the volatility that has characterized global precious metals markets in recent weeks.

Silver prices also moved lower during the day. The white metal fell by Rs 55 per tola, bringing its market rate down to Rs 5,230 per tola. On the previous trading day, silver had been sold at Rs 5,285 per tola.

Market observers note that domestic gold and silver prices in Nepal are largely influenced by trends in international bullion markets, movements in the US dollar, central bank policies, inflation expectations, and global economic developments. Changes in import costs and local demand conditions can also affect pricing in the domestic market.

The latest decline comes after precious metals experienced periods of strong upward momentum earlier in the year, driven by geopolitical uncertainties, inflation concerns, and investor demand for safe-haven assets. However, profit-booking activities and shifts in market expectations regarding interest rates have contributed to periodic corrections in gold and silver prices across global markets.

For consumers and jewelry buyers, the decrease in prices may provide some relief after a prolonged period of elevated bullion rates. Lower prices could potentially support retail demand, particularly ahead of upcoming festive and wedding seasons when purchases of gold jewelry traditionally increase.

Traders and bullion dealers are closely monitoring developments in international commodity markets to assess whether the recent decline represents a short-term correction or the beginning of a broader downward trend. Any significant movement in global gold prices, currency markets, or economic indicators could influence the direction of precious metal prices in Nepal in the coming weeks.

Despite the latest decline, gold continues to trade near historically elevated levels, reflecting its enduring appeal as a store of value during periods of economic uncertainty. Silver, which is influenced by both investment demand and industrial usage, remains subject to fluctuations tied to broader market conditions.

The Federation of Nepal Gold and Silver Dealers’ Association is expected to continue updating daily rates based on prevailing market dynamics. Investors, traders, and consumers alike will be watching closely for further developments in the precious metals market as global economic conditions evolve.