Gold Price Tumbles by Rs 3,800 in Nepal Amid Rising US Bond Yields

Gold prices in Nepal plummeted by Rs 3,800 per tola last week, according to the Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA). The market price of gold decreased to Rs 294,800 per tola from Rs 298,600 when the market closed the previous week.

The price of gold increased for three days, with the largest gain of Rs 2,800 recorded on Wednesday. However, this was followed by a decline of Rs 5,000 on Sunday.

FENEGOSIDA attributed the drop in gold prices to the rising yield on 10-year US Treasury bonds, which is now at its highest level since 2002. As per Reuters, 'for non-yielding assets, all else equal, that is going to be challenging because gold has to compete against that yield level in people's portfolios.'

Silver prices also saw a decline of Rs 170 per tola last week, from Rs 4,620 to Rs 4,450.