Bullion price surges by 500 to nearly 18-month high

Kathmandu February 12- Gold price surged by Rs 500 per tola to nearly an 18-month high of Rs 54,500 a tola on Thursday.

The last time bullion had traded at current level was on August 17, 2014, when it was priced at Rs 54,600.

The price of precious metals had come under pressure last year in anticipation of a rate hike by the US central bank. After Federal Reserve raised US rates for the first time in nearly a decade in December, it is expected to hike rates gradually going forward.

The turmoil in stock markets is making the metal attractive, according to the World Gold Council (WGC),Reuters reported today.

Stronger demand from India — the world’s second-biggest gold consumer after China — could support the global bullion price, which is trading near its highest in eight-and-a-half months.

India remained second biggest consumer of gold in 2015 after China, where demand last year rose three per cent to 984.5 tonnes. While jewellery demand in China eased due to a slowing economy, investment demand climbed as a weakening currency triggered demand for gold bars and coins, as perReuters.

Price of precious metals in domestic market is based on rates in international market.

Silver price, meanwhile, has remained constant at Rs 730 per tola since Tuesday.