The Nepali bullion market witnessed sharp volatility throughout March. In the period, the market reached peaks in the early part of the month and experienced a fall towards the end.

Monthly performance overview

Gold began the month at Rs 320,500 per tola and hit a monthly high of Rs 328,600 on March 3. However, the latter half of the month saw a consistent downward trend, with the price ultimately settling at Rs 290,200 on March 31. This represents a monthly decline of approximately 9.45 percent.

Silver followed a similar trend. It started with a high of Rs 5985 and a low to 4,845 by the end of the month, posting a loss of nearly 19.5 percent.

The domestic price movements are closely tied to movements in the Multi-Commodity Exchange (MCX) of India and international market trends.

According to Reuters, a strengthening dollar, geopolitical tensions, and rising crude oil prices contributed to the volatility in bullion markets during the period.

Key data points from the chart

• Peak gold price: Rs 328,600 (March 3)

• Lowest gold price: Rs 273,900 (March 24)

• Peak silver price: Rs 6,020 (March 2)

• Lowest silver price: Rs 4,425 (March 23)

From a technical perspective

Shakti Koirala, who keenly observes the bullion market, identifies $4400 per ounce as a key support level in the international market. This is equivalent to approximately Rs 245,091 per tola in the domestic market. This level generally attracts buying interest, preventing further decline.

The resistance level is seen at $5400 per ounce, equivalent to roughly Rs 300,793 per tola in the local market. This indicates that when the price reaches the resistance level, selling pressure often increases, making it difficult for the price to go higher.