BREAKING: Gold Prices Surge by Rs 20,500 per Tola, Hits Rs. 311,100

Gold prices in Nepal witnessed an unprecedented surge on Sunday, jumping by Rs 20,500 per tola in a single day to reach Rs 311,100 per tola, according to the Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA).

The sharp rise marks one of the largest single day increases in recent years and has sent shockwaves through the domestic bullion market. Just a day earlier, fine gold was being traded at Rs 290,600 per tola.

Tejabi gold also recorded a significant increase, climbing by Rs 20,500 per tola to Rs 310,400. The price of Tejabi gold had stood at Rs 289,900 per tola on the previous trading day.

Silver prices followed the same upward trend. The precious metal gained Rs 305 per tola, with its price rising to Rs 5,345 per tola from Rs 5,040 per tola a day earlier.

The sharp rise in gold prices comes in the immediate aftermath of the budget announced on Friday, which introduced significant changes to the tax structure on precious metals. The government doubled the customs duty on gold from 10 percent to 20 percent, a move that had a direct impact on the domestic bullion market.

Although the budget removed the existing 2 percent luxury tax on gold, it also imposed a 0.50 percent skill promotion fee on consumers. Traders say the tax adjustments were the primary driver behind Sunday's record Rs 20,500 per tola increase, as international gold prices recorded only a modest gain during the same period. The budget also raised the customs duty on silver from 10 percent to 20 percent, contributing to the rise in silver prices.