Gold price up, silver stable
While silver price remained constant week-on-week, gold recorded fourth consecutive weekly gain between January 15 and 20 buoyed by a weaker dollar ahead of the inauguration of US President-elect Donald Trump on Friday.
Trump's protectionist statements, with mixed promises of tax cuts and infrastructure spending, increased demand for gold as a safe haven in the week.
Better-than-expected jobs and housing data also reinforced view that US economy is sufficiently robust to warrant rate rises.
Gold is highly-sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
The prices of precious metals in the domestic market are governed by their rates in the international market.
When market opened on Sunday, gold was priced at Rs 54,700 per tola. Its price surged by Rs 500 a tola to Rs 55,200 per tola on Monday. On Tuesday and Wednesday, bullion price edged up by Rs 100 a tola to Rs 55,300 per tola and Rs 200 a tola to Rs 55,500 per tola, respectively. On Thursday, however, gold price fell by Rs 300 a tola to Rs 55,200 per tola on downside corrections and profit taking. Gold was traded at same rate on Friday. Gold price clocked a weekly gain of Rs 500 a tola or 0.91 per cent.
Silver, on the other hand, was more stable in the week. It was traded at Rs 795 per tola on Sunday and its price stayed same over next two days. On Wednesday, silver price edged up by five rupees a tola to Rs 800 per tola, but dipped by same amount the very next day to be traded at Rs 795 a tola. Its price remained the same on Friday.
