Domestic gold edges up, 24-karat standing at Rs233,600 per tola

May 18, 2023 (MLN): Domestic bullion inched up on Thursday, with 24-karat gold reaching Rs233,600 per tola, rising by Rs500.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs200,274, up by Rs428.

While 10-gram 22-karat gold stood at Rs183,585 per tola.

Meanwhile, the price of silver continued to decline in the domestic market, with 24-karat silver falling by another Rs50, to close at Rs2,900 per tola, and 10-gram 24-karat silver lost Rs42.86 per tola to close at Rs2,486.28 per tola.

Notably, domestic silver’s continued decline can be attributed to the international spot silver prices, which are down 1.83% this week on top of the previous week’s significant fall of 6.55%.

On the other hand, international spot gold continued the downward journey and is currently trading at $1974.16, down by -0.36% on the day.

Moreover, the U.S. dollar index (DXY) has also continued its climb, currently 0.42% higher on the day, this makes dollar-denominated gold expensive for investors holding other currencies.

Notably, DXY is up 1.59% this month, this surge is mainly attributable to the debt-ceiling debacle.

Democrats and Republicans are inching closer to reaching an agreement on raising the $31.4 trillion borrowing limit. But the threat of a potentially catastrophic U.S. debt default lingers.

Similarly, international spot silver also went down in line with the gold’s trend, by 0.89% and is currently trading at $23.52.

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