KATHMANDU, NOVEMBER 25

The gold price has plummeted significantly in the domestic market following a reduction in the custom duty rate for the precious metals.

In a significant single-day decline, the price of gold fell by Rs 15,900 per tola, following the Cabinet's decision to slash the customs duty for the gold.

Previously, a 20% custom duty was applied, a raise from the former rate of 15% implemented in the fiscal year 2080/81. However, after a recent Cabinet meeting, the custom duty was reduced to 10%, which has led to a sharp decrease in gold prices across the Nepali market.

According to the Nepal Federation of Gold and Silver Dealers' Association, fine gold is currently trading at Rs 151,300 per tola after adjusting to the declined custom rate, significantly down from yesterday's rate of Rs 167,200 per tola.

In addition, the price of silver has also seen a decline. Silver is now trading at Rs 1,845 per tola, a reduction of Rs 115 from yesterday's rate of Rs 1,960 per tola.

The government has similarly reduced the custom duty for silver from 15% to 10%.