KATHMANDU: Gold prices in Nepal witnessed a significant decline on Sunday, falling by Rs 12,500 per tola.

According to the Nepal Gold and Silver Dealers’ Federation, gold is being traded at Rs 282,000 per tola today, down from Rs 294,500 per tola recorded the previous day. Over the past week, the price has dropped by a total of Rs 27,400 per tola. Just last Sunday, gold was traded at Rs 309,400 per tola.

Experts say the sharp decline is mainly driven by fluctuations in the international market. As global oil prices rise, countries need more US dollars for imports, increasing demand for the dollar. A stronger US dollar typically pushes gold prices downward.

In addition, rising oil prices are contributing to global inflation, leading to expectations of higher interest rates. When interest rates increase, investors often move away from gold and silver, reducing their demand and causing prices to fall.

Meanwhile, silver prices also declined. Silver dropped by Rs 355 per tola, falling from Rs 4,895 to Rs 4,540 per tola on Sunday.