Gold prices in Nepal reached an all-time high on Ashoj 31, when the rate climbed to NPR 258,000 per tola. This marked the highest price ever recorded in the country.

Until the end of Bhadra, gold prices were rising steadily, but Ashoj saw a much steeper surge. From NPR 215,200 per tola on the last day of Bhadra, the price jumped by NPR 42,800 within a month.

As prices rose rapidly, demand for gold also increased. Previously, due to high prices, consumption was low and commercial banks had limited imports. In Shrawan and Bhadra, banks imported only 200 kg of gold combined. When demand suddenly surged in Ashoj, banks were unable to supply enough gold, causing temporary shortages. According to the Department of Customs, Nepal imported 400 kg of gold in Ashoj alone, a 199% increase compared with previous months. A total of 601 kg has been imported so far in the current fiscal year.

However, the bullish momentum has since slowed. After setting a record of NPR 258,000, gold prices have gradually fallen. As of Sunday, the price dropped to NPR 241,900, a decline of NPR 16,100 or 6.24% since the beginning of Kartik.

The sharp fall in international gold prices is the primary reason for the decline in Nepal. Analysts suggest investors started booking profits after constant record highs, shifting funds toward the stock market, which contributed to lower demand for gold.

The drop in gold prices is also being linked to reduced geopolitical tension, a stronger US dollar, and signs that uncertainties in the United States might be easing.

Experts believe the recent drop does not indicate the end of the upward trend. They describe it as a short-term pause after a rapid rally. Rising concerns of recession, global conflicts, and strong central bank purchases had pushed gold prices up by more than 65% earlier this year.

If the US Federal Reserve cuts interest rates as expected later this month, gold demand could weaken further. If not, investors may once again turn toward gold, limiting downside risks.

Analysts recommend that long-term investors stay patient, as the market is unlikely to see extreme volatility in the immediate future, but significant losses also seem unlikely.