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Gold prices tumbled today, May 18, deepening losses after touching a seven-week low, pressured by a stronger US dollar as US debt ceiling fears subsided.
Bullion for August delivery contracted by 0.20% to $1,980.90 an ounce at 9:15 am Makkah, after recording yesterday the lowest close since the end of March.
Additionally, silver futures for July delivery edged down 0.50% to $23.78 an ounce.
Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, settled at 102.95 points, after reaching a six-week peak yesterday at 103.11 points.
Concerns about the possibility of the US defaulting on its debt next month have subsided, after US President Joe Biden said Congressional leaders agreed not to allow for this.
US Republicans, who control most of the House of Representatives, hinted at a potential deal on the government debt ceiling soon. However, Biden stressed there is still a lot of work to be done before reaching this agreement.
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