Kathmandu-Gold prices in Nepal have recently surged due to international market trends, with daily trading hitting all-time highs.

On Friday, the hallmark gold price rose by Rs 7,100 per tola, trading at Rs 258,000 per tola, surpassing the previous record of Rs 250,900 on Thursday.

Rising geopolitical tensions, expectations of further US interest rate cuts, and rapid financial market changes have driven the gold price up.

Central banks worldwide have increased gold purchases due to conflicts in Ukraine and the Middle East, as well as tensions between the US and China.

Nepal’s gold prices are influenced by factors such as the international rate, customs duties, bank and trader margins, and foreign exchange adjustments.

The US Fed rate cut, rising geopolitical risks, China’s massive gold purchases, and economic uncertainty are driving up the global gold price.

Gold, considered a safe-haven asset, benefits from persistent inflation concerns and political risks in the US.

According to the World Gold Council’s 2025 survey, 95 percent of central bankers expect global gold reserves to increase this year, despite the record high gold price.

The US dollar has fallen sharply this year due to dramatic changes, with its value against a basket of foreign currencies declining significantly from early March to the first week of July, a period marked by high trade uncertainty and global tensions.

US monetary policy is also a factor, as the Federal Reserve has started cutting interest rates for the first time this year, announcing two more rate cuts by the end of 2025.

Such monetary policy usually weakens the dollar and boosts the price of gold. As concerns about a possible economic recession and inflation occurring simultaneously grow, gold has become increasingly important as a hedge against that scenario.