KATHMANDU: Gold prices dropped by Rs 4,000 per tola on Thursday.
The Nepal Gold and Silver Traders Federation set the price of gold at Rs 164,500 per tola, down from Rs 168,500 the previous day.
Likewise, silver prices also saw a decrease of Rs 55 per tola, falling from Rs 2,015 on Wednesday to Rs 1,960 on Thursday.
This drop in both gold and silver prices mirrors a broader trend in the international market, which is impacting prices in Nepal.
According to the Federation, daily price adjustments in Nepal are based on global market fluctuations.
Globally, the price of gold experienced a sharp 3.2 percent decline in just one day. Gold, which was trading at $2,745 per ounce on Wednesday, had fallen to $2,657 per ounce by Thursday morning.
This significant price drop is linked to the strengthening of the US dollar following Donald Trump’s election as President.
Media reports suggest that Trump's return to office could lead to higher inflation, which may further influence gold and silver markets.
As inflationary pressures rise, the US Federal Reserve's interest rate policy could also impact future market trends.
Gold had been a popular investment in anticipation of a rate cut, but if inflation continues to climb, the likelihood of a rate reduction may decrease, affecting gold prices.
Reuters reports that the strengthening of the US dollar has also contributed to the drop in gold prices.
Historically, the price trends of gold and crude oil tend to move in the opposite direction to the value of the dollar.
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