The record-breaking streak for gold prices have come to an end with a decrease of Rs. 700 per tola on 24th October (8th Kartik, 2081) 

Let’s break down today’s gold and silver prices.

Gold Price in Nepal Today – 24 October 2024 (8 Kartik 2081)

• 24K Fine Gold Price: NPR 166,000 per tola

Comparison with the previous day:

• 24K Fine Gold Price Yesterday: NPR 166,700 per tola
• Price change: A notable decrease of NPR 700 per tola in 24 hours.

Record-Breaking Price Rise Streak Comes to an End:
Gold price in Nepal sees a significant drop of Rs. 700 in a single day reaching Rs. 166,000 per tola as compared to Rs. 166,700 yesterday.

Silver prices have followed a similar trend, with a  decrease of Rs. 40, reaching Rs. 2,095 per tola.

Silver Price in Nepal Today – 24 October 2024 (8 Kartik 2081)

• Current Silver Price: NPR 2,095 per tola

Comparison with the previous day:

• Silver Price Yesterday: NPR 2,135 per tola
• Price change: A smaller decrease of NPR 40 per tola.

This was a price breakdown for the Nepali market. Today, let's talk about what’s going on with gold in the international market, shall we?

The Current Price of Gold in the International Market

Gold seems to be shining brighter than ever! As of October 24, 2024, gold is priced at a whopping $2,727.76 per ounce. If you converted that to grams, it would be approximately Rs. 118,124 per 10 grams. 

But here’s where it gets even more interesting—Bank of America is predicting that gold could hit $3,000 per ounce by 2025. This means gold could cost Rs. 142,319.77 per 10 grams by 2025- Add in the 20% customs duty and it would get to around Rs.170,784 in Nepal! Today, we’re sitting at Rs. 142,320  for 10 grams, so that’s a pretty huge leap. 

Who Sets the Price of Gold?

Now, you're probably wondering, "Wait, who exactly decides how much gold is worth?" well it’s definitely not just one person sitting with a calculator. Gold prices are actually set in a few different ways, depending on how you're buying it. These are different ways how gold prices are set:

1. The Spot Price: This is the price of gold if you’re buying or selling it right now. It’s kind of like walking into a store and buying something on the spot. The price changes throughout the day based on how many people are buying or selling gold at that moment. So, it’s a bit like a game of supply and demand that’s always in motion.
2. The LBMA Gold Price: For big deals (think banks or massive companies), they use something called the LBMA price. It’s set twice a day through electronic auctions, mostly in the UK. The idea is to avoid the constant up-and-down swings of the spot price by agreeing on a more stable, average price for bigger transactions. So, if you’re a big spender, this is probably what you’d be looking at.
3. The Futures Contract Price: This one’s for the planners! Buyers and sellers agree on a price for gold, but the deal is set for a future date—like next month or even next year. It’s a way for both sides to lock in a price and avoid risks, especially if you’re buying large amounts of gold. It’s kind of like making a reservation for your gold.

How Is the Price of Gold Actually Set?

Okay, so what really determines the price of gold? It’s simple—supply and demand. Gold is rare, and anything that’s rare automatically has value, right? Plus, it’s not just for making shiny jewelry; people also invest in it and use it in high-tech industries. That’s why it costs a pretty penny.

Now, gold prices aren’t just set by a random person. It’s mostly financial institutions and banks keeping an eye on the market. They adjust prices depending on how much gold people are buying and selling. Some of the big players are Comex in the U.S. and the London Bullion Market Association (LBMA) in the UK. They’re like the gold price referees.

Why Is Gold Price Rising in the International Market?

So, why is gold on the rise? It’s not just because it looks good on your wrist or around your neck. The two big reasons are inflation and global financial uncertainty.

Here’s how it works: When inflation goes up and everything gets more expensive, people start to worry that their money isn’t going to be worth as much. Gold, on the other hand, keeps its value really well. So, people rush to buy it, driving up the price.

At the same time, the U.S. Federal Reserve has been lowering interest rates. When rates are low, saving money in the bank isn’t as rewarding because you don’t earn much interest. Instead, people look for other places to store their money, and gold is a favorite. Add to that the fact that governments around the world are taking on more and more debt—When governments take on huge loans, it can weaken their economy and cause inflation or make their currency lose value. People then look for safer ways to protect their money, and gold is considered a reliable choice because it holds its value over time. So, when people see governments taking on more debt, they tend to buy more gold. This makes the price go up even more.

If you have any questions regarding this, do let us know in the comments below or by sending an email to admin@khatapana.com. And feel free to share this daily gold price update to your friends.