Gold price in the domestic market surged by Rs20,500 per tola (11.663 grams) on Thursday, reaching a record high of Rs339,300.

According to the Federation of Nepal Gold and Silver Dealers Association, gold had traded at Rs318,800 per tola on Wednesday.

Silver price also rose by Rs205. The metal is being traded at Rs7,505 per tola, the association said.

The latest rate is the highest ever recorded for gold and silver in the domestic market.

Gold prices surged to fresh records on Thursday, extending a sharp rally as investors sought safe assets amid geopolitical and economic uncertainty, Reuters reported.

Spot gold rose 2.6 percent to $5,538.69 an ounce by early Asian trading after touching an all-time high of $5,591.61. Analysts cited growing US debt concerns, fragmentation of global trade, strong central bank buying and a weaker dollar as key drivers. Gold has crossed the $5,000 mark for the first time this week and is up more than 10 percent so far, having already gained over 27 percent this year.

Silver also climbed, nearing the $120 mark. Spot silver rose 0.6 percent to $117.30 an ounce after hitting a record $119.34 earlier. Reuters said demand from investors seeking cheaper alternatives to gold, coupled with supply shortages and momentum buying, has pushed silver up more than 60 percent this year. Other precious metals were mixed, with platinum rising while palladium edged lower.