International and domestic gold prices ended flat to marginally lower this week as a rebound of the US dollar and lack of progress of the US stimulus bill weighed on rates. The yellow metal ended with a mild loss of Rs 34 or 0.07 percent for the week.
While the white metal surged Rs 2,170 or 3.21 percent for the week on a retail frenzy, calls to drive silver prices higher by buying shares in silver miners and exchange-traded funds (ETF) were circulating on social media such as Reddit and Twitter. This forced some traders to cover short positions as rumours rippled through the market about a GameStop-style squeeze driven by retail investors.
US President Joe Biden's $1.9 trillion pandemic relief proposal faces hurdles as Republicans objected to it for being too expensive and pushed for a smaller plan targeting vaccine distribution.
Meanwhile, on the central bank side of things, the US Federal Reserve's decision stuck to its dovish tone and left its key overnight interest rate near zero to maintain monetary support until there is a stronger rebound from the pandemic-triggered recession.