Gold price soars by a hefty NPR 47,000 per tola in a year

KATHMANDU, APRIL 13: Over the past year, the price of gold has surged by as much as NPR 47,000 per tola. According to the Nepal Gold and Silver Business Association,  the price of the yellow metal jumped to NPR 186,000 per tola today, compared to NPR 139,000 per tola on the same day a year ago. 

The rise in gold price is attributed to several global factors, as explained by gold traders. Diyas Ratna Shakya, Senior Vice President of the association, highlighted that geopolitical tensions, US-imposed tariffs, and interest rate cuts by central banks in Europe and the US have all contributed to the surge in the market value of the precious metal

The ongoing Russia-Ukraine war, along with the current conflict between Hamas and Israel, has significantly impacted global markets. The said war, which began in 2022, has caused an estimated USD 143 billion in damages in Ukraine and displaced more than 6 million people. Additionally, the Hamas-Israel conflict, which escalated in October 2023, has resulted in over 20,000 deaths.

The tensions between Armenia and Azerbaijan over the Nagorno-Karabakh region, as well as territorial disputes between Venezuela and Guyana over the Essequibo region, have further fueled geopolitical instability, further driving up the price of gold. Shakya emphasized that these ongoing conflicts are key drivers behind the rising value of the very metal.

Similarly, the Federal Reserve, the central bank of the United States, reduced interest rates around Bhadra (mid-August to mid-September) of last year. The Federal Reserve lowered the rate by 0.50%, bringing it to a range of 4.75% to 5%. This marked the first interest rate cut in the past four years.

European banks also followed suit by reducing their interest rates, contributing to the increase in gold prices. Furthermore, recent tariffs imposed by the United States on imports from various countries, including China, Canada, and Mexico, have played a role in driving up the price of gold.

Forecast for 2082: Gold Price Could Soar to NPR 250,000 Per Tola

Senior Vice President Shakya has predicted that the price of gold could reach NPR 250,000 per tola by 2082. While speaking to aarthiknews.com, he confidently stated that the gold price is likely to hit NPR 250,000 next year.

He remarked, "It appears that the US will not back down from imposing tariffs. Countries around the world show no signs of ending their conflicts. As a result, I expect the gold price to climb to a staggering NPR 250,000 per tola."

However, he also emphasized that if wars come to an end, and the world transitions toward peace, while the ongoing trade disputes are resolved diplomatically, gold prices could potentially decrease.