Gold prices near record highs despite customs duty reduction

Kathmandu, February 10 — Despite a reduction in customs duties, the price of gold in the Nepali market has once again approached a new record.

According to the Federation of Nepal Gold and Silver Dealers' Association , the price of gold reached NPR 169,600 per tola (11.66 grams) on Monday, which is close to the record price before the customs duties were reduced.

Earlier, the price of gold had reached NPR 171,000 per tola.

As per the decision of the Cabinet meeting held on November 21, the customs duties on gold and silver were set at 10%.

The reduction in customs duties from 20% to 10% led to a decrease in the price of gold.

After the decision was published in the official gazette on November 24, and implemented on November 25, the price of gold dropped significantly.

In the previous fiscal year, the customs duty on gold was 10%, but it was increased by the then Finance Minister, Barshaman Pun, through the budget.

This decision was later reviewed and implemented.

Afterward, the price of gold had remained around NPR 150,000 per tola, but now, it has steadily risen again.

The increase in the international market price of gold has also impacted the local market.

According to the Federation, on Monday, the price of gold increased by NPR 1,400 per tola compared to the previous day.

On Sunday, the price of gold was NPR 168,200 per tola.

Similarly, the price of silver, which was NPR 1,960 on Sunday, increased to NPR 1,975 on Monday.