The price of gold in the Nepali market has continued to decline.

On Tuesday, the price of gold dropped by Rs2,600 per tola (11.664 grams) to Rs148,700, according to the Federation of Nepal Gold and Silver Dealers Association. Silver also saw a decrease, dropping by Rs25 per tola to Rs1,820.

This follows a significant drop on Monday when gold prices plummeted by Rs15,900 per tola after the government cut the customs duty on gold from 20 percent to 10 percent. The price of hallmark gold was set at Rs151,300 per tola on Monday, down from Rs167,200 on Sunday.

The decision to slash the duty on gold customs was made during a cabinet meeting on Thursday. This move aims to address the imbalance caused by Nepal’s higher gold duty compared to India's, which recently reduced its duty from 15 percent to 6 percent. The disparity had encouraged illegal trade through the open border. The Federation has suggested that Nepal set the customs duty at 8 percent to help curb smuggling.