Gold, silver prices decline
Gold and silver prices declined this week by Rs 1,000 and Rs 40 per tola, respectively, from August 23 to 28. It was the biggest weekly fall after the regular two-week gain in the bullion market after the devaluation of Chinese yuan on August 11.
According to the reports of the international media, there are signs of a further reduction in labour market-slack, which may boost interest rate expectations as the US central bank remains largely upbeat on the economy, and a positive reaction in the greenback could dampen the appeal of the precious metal.
Gold price in the local market is affected by the international market trend as the price of bullion is fixed as per the international market rates.
The market opened on Sunday with gold price fixed at Rs 51,600 per tola. Bullion price rose by Rs 300 per tola on Monday to be fixed at Rs 51,900 a tola. The price of the precious yellow metal declined by Rs 100 per tola on Tuesday and continued its free fall till Thursday.
On Wednesday, the price of the yellow metal plunged heavily by Rs 800 to be traded at Rs 51,000 per tola. Gold price again tumbled by Rs 500 per tola on Thursday and was traded at Rs 50,500 per tola. However, gold price edged up by Rs 100 per tola on Friday to close the week’s trading at Rs 50,600 per tola.
Likewise, price of silver also plunged by Rs 40 per tola in the week.
Silver was traded at Rs 715 per tola on Sunday. The price of the white metal declined by five rupees on Monday to be fixed at Rs 710 per tola. Its price plunged by Rs 10, Rs 10 and Rs 20 on Tuesday, Wednesday and Thursday, respectively. With a marginal gain of five rupees, silver price was fixed at Rs 675 per tola on Friday.