KATHMANDU — Gold prices snapped a downward streak in Nepal’s domestic market Thursday, climbing Rs 4,300 per tola to Rs 304,700. The Federation of Nepal Gold and Silver Dealers’ Association reported the sharp turnaround after fine gold closed at Rs 300,400 per tola Wednesday.

Traders watched the yellow metal slide all week before this abrupt recovery. Silver followed suit, gaining Rs 180 per tola to hit Rs 5,060. It traded at Rs 4,880 the previous day, the federation said.

The daily pricing reflects transactions in Kathmandu’s busy gold souks, where dealers set benchmarks based on local demand and global cues. Nepal’s gold market often mirrors international trends but adjusts for import duties and currency fluctuations against the US dollar.

Fine gold, or 24-karat, commands the top price. Thursday’s jump marked the biggest single-day gain in recent weeks. Association officials noted steady buying interest picked up midday, pushing values higher.

Silver’s modest rise came amid similar buying. The metal’s price volatility tends to trail gold but responds to industrial demand signals from jewelry and electronics sectors.

Dealers track these shifts closely. A tola equals 11.66 grams, the traditional unit in South Asia. Prices update daily around noon local time.

Last week’s declines shaved off more than Rs 10,000 per tola from earlier highs near Rs 315,000. Global factors, including a stronger dollar and reduced safe-haven buying, weighed on prices then. Thursday’s bounce aligned with a softer dollar and renewed investor interest.

The federation, which represents over 150 dealers nationwide, publishes official rates to standardize trading. Violations carry penalties, ensuring market stability.

Jewelry demand peaks ahead of festivals like Dashain in October. Buyers often lock in prices during upswings to hedge against further rises. Retailers reported brisk sales Thursday afternoon.

Experts link Nepal’s gold appetite to cultural traditions. Families gift gold during weddings and holidays, sustaining high volumes year-round. Imports mainly flow from Dubai and India.

Silver appeals to a broader base, from silversmiths to investors eyeing cheaper alternatives. Its price per tola lags gold by a wide margin but shows parallel movements.

Friday’s prices will depend on overnight global trading in New York and London. Dealers anticipate steady demand unless external shocks intervene.