Kathmandu, After a steady surge over recent weeks, gold prices in the Nepali market have finally begun to decline. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold fell by Rs 2,900 per tola on Tuesday.

On Monday, fine gold was traded at Rs 239,900 per tola, but the rate dropped to Rs 237,000 per tola on Tuesday. Similarly, the price of 10 grams of gold has been fixed at Rs 203,190, the Federation reported.

Silver prices also declined, falling from Rs 2,980 per tola on Monday to Rs 2,920 per tola on Tuesday.

Earlier this month, gold prices had crossed the Rs 250,000 per tola mark, hitting record highs due to rising global demand and geopolitical uncertainty. Following interest rate cuts by central banks in Canada, the UK, the European Union, Australia, Mexico, and Russia, investors had shifted heavily toward gold, seeking safer and higher-yielding assets.

Experts say the rise in gold prices was also fueled by geopolitical tensions — especially the prolonged conflicts between Russia and Ukraine and Israel and Palestine, with Lebanon, Yemen, and Iran’s involvement further increasing instability.

According to the World Gold Council, central banks around the world purchased around 1,045 tonnes of gold in 2024, continuing their annual trend of buying roughly 1,000 tonnes to strengthen reserves. This accumulation contributed significantly to the global rise in gold demand and price.

Another major factor has been the U.S. Federal Reserve’s confirmation of interest rate cuts, which typically drives investors toward gold when returns on other assets decrease.

While gold remains a deeply valued metal among Nepali women — as well as in neighboring India, where gold jewelry is widely popular — the situation differs in Western countries like the U.S., China, and Russia, where gold is primarily viewed as a financial asset rather than adornment.

Analysts note that many nations are expanding their gold reserves not for jewelry but as a strategy to reinforce national financial strength and security.

However, with gold prices reaching levels unaffordable for ordinary buyers, the market has seen reduced retail demand. Over the past few days, prices have gradually started to decline, signaling a potential market correction.