April 23: The price of gold has declined in the domestic market on Tuesday.

According to the Federation of Gold and Silver Dealers Association, the price of the precious yellow metal dropped by Rs 2,700 per tola (11.66 grams) compared to the previous trading day.

The federation fixed the price of hallmark gold at Rs 135,500 per tola on Tuesday. Hallmark gold was traded for Rs 138,200 on Monday.    
Similarly, the price of worked gold has also fallen by Rs 2,700 per tola. Worked gold, which was traded at Rs 137,500 per tola on Monday is being traded at Rs 134,850 on Tuesday.    
Likewise, the price of silver has decreased by Rs 45 per tola compared to its price on Monday, according to the federation. Silver was traded for Rs 1,705 per tola on Monday while its price has dropped to Rs 1,660 on Tuesday.

The federation fixes the price of gold and silver based on the price in the international market.

The price of gold had been rising steadily in the past few weeks, reaching an all-time high of Rs 139,200 per tola on April 16.

In the Nepali month of Chaitra (mid-March to mid-April), the price of gold increased eleven times in the domestic market of Nepal.

The recent geopolitical tension due to the Israel’s offensive in Gaza and the Russia-Ukraine war as well as tensions between Israel and Iran have led to investors to invest in gold considering it as a safe haven in times of turmoil.

However, analysts say that the price has dropped slightly due to the de-escalation of tensions between Iran and Israel.