Downward trend continues: 24-karat gold prices fall by Rs1,000 per tola

May 19, 2023 (MLN): Domestic bullion fell on Friday, with 24-karat gold reaching Rs232,600 per tola, decreasing by Rs1,000.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs199,417 tola, shedding Rs857.

While 10-gram 22-karat gold stood at Rs182,800, which decreased by Rs785.

Similarly, the price of silver continued the downward journey in the domestic market, with 24-karat silver falling by Rs50, to close at Rs2,850 per tola, and 10-gram 24-karat silver losing Rs42.97 to close at Rs2,443.41 per tola.

On the other hand, international spot gold fell sharply in yesterday’s trading session by 1.19% and is down 2.45% in this week, currently trading at $1,961.66.

This decline is attributed to markets showing more optimism for a U.S. debt ceiling deal that could prevent a potentially disastrous default.

Which also led the U.S. dollar index (DXY) to finally cool down after almost a 2% gain from the lows in a few days, currently trading 0.18% lower on the day.

However, if we look at gold from a purely technical perspective, this decline can be seen as a correction before the price discovery above the all-time highs that were broken after 2 years.

Meanwhile, international spot silver is currently trading at $23.65, down by 1.34% in this week on top of last week’s 6.55% decline.

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