Domestic gold holds steady, international gold slides as dollar strengthens

May 17, 2023 (MLN): Domestic bullion slowed down on Wednesday, with 24-karat gold settling at Rs233,100, with no change in the daily price.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs199,846, while 10-gram 22-karat gold stood at Rs183,192.

Similarly, the price of silver also cooled down in the domestic market, with 24-karat silver closing at Rs2,950 per tola, and 10-gram 24-karat silver at Rs2,529.14 per tola.

On the other hand, international spot gold continued its downward trajectory and is currently trading at $1982.3, down by -0.30% on the day.

Spot gold is down 1.41% on the week in just the third trading session, and down a significant 4.77% from the high it made earlier in the month.

The decline in commodity market can be attributed to the strength of the U.S. dollar index (DXY) which is up by around 2% from previous week’s low, making dollar-denominated gold expensive for investors holding other currencies.

The dollar advanced as regional banks surged and negotiations in Washington over raising the debt ceiling inched forward.

The U.S. dollar strengthened against a range of global currencies, capitalizing on its safe-haven reputation amid ongoing debt ceiling discussions.

Meanwhile, international spot silver is currently trading at $23.75, up by 0.18%.

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