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By Our Reporter

 After the government reduced the customs duty for the precious metal, the price of gold plummeted in the domestic market on Monday and Tuesday.

Gold price declined by Rs. 15,900 per tola following the Cabinet’s decision to slash the customs duty on gold. It further fell by Rs. 2,600 per tola on Tuesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, gold traded at Rs. 148,700 per tola on Tuesday. The gold was traded at Rs. 167,200 per tola in the domestic market on Sunday while it fell to Rs. 151, 300 on Monday after the reduction in customs duty.

Previously, a 20 per cent customs duty was applied, a raise from the former rate of 15 per cent implemented through the budget introduced on May 28 for the fiscal year 2024/25.

However, after a recent Cabinet meeting, the customs duty was reduced to 10 per cent, which has led to a sharp decline in gold prices in the domestic bullion market.

Earlier on October 31, 2024, the price of gold had set a historic record of Rs. 171,000 per tola in the domestic market.

Businessmen said the price would decrease further as the investors started investing in US dollars in place of gold after Donald Trump’s election as next US President.