Kathmandu — The price of gold in Nepal soared to a record high in the fiscal year 2081, reaching Rs 186,000 per tola on Chaitra 31. This marks the highest price ever recorded in the domestic market.

Gold was traded at Rs 136,800 per tola on Baisakh 2, but within a year, it climbed by nearly Rs 50,000. The price had seen some fluctuations early in the year, falling to Rs 135,500 per tola by Baisakh 11 and further declining to Rs 134,500 by Baisakh 19.

A major factor affecting prices was the government's decision in Mangsir 2081 to reduce customs duties on gold and silver to 10 percent. Prior to this move, gold had peaked at Rs 171,000 per tola in Kartik. Following the duty cut, the price dropped sharply to Rs 148,700 per tola by Mangsir 11.

As today marks the New Year public holiday, the Federation of Nepal Gold and Silver Dealers' Association has not issued a new gold rate.

In Nepal, gold prices are set based on international market rates, with the daily price determined by the international price per ounce recorded at midnight the previous day. Adjustments are made for customs duties, banking and operational costs, foreign exchange rates, and dealer margins.

Unlike many countries, raw physical gold cannot be purchased directly in Nepal; gold is available only in the form of jewelry. Buying jewelry involves an additional cost of around 10 percent for labor and wastage, which is not recovered upon resale. Consequently, gold is generally not seen as a preferred investment option in Nepal.