Gold price soars to nearly two-year high

Kathmandu February 25- Gold price was set at Rs 56,000 pertola — Rs 300 more than the price on Tuesday — and nearly a two-year high, on Wednesday. The last time the precious yellow metal was traded at the current level was on March 20, 2014.

The demand for precious metals has gone up significantly in the recent weeks largely as a safe-haven asset given the equity doldrums and overall risk aversion. The price of precious metals in the domestic market is governed by their rates in the international markets.

The precious metal is the best performer among commodities this year as concern about slowing global growth and slumping oil prices spurred financial-market turmoil and increased speculation that the Federal Reserve will hold off on raising US borrowing costs.

Meanwhile, although silver eased 0.3 per cent in the international market, according toReuters, its price remained constant at Rs 735 per tola in the local market on Wednesday.