Kuwait’s gold prices hit record $2,179 per ounce

KUWAIT: Gold prices in the global market reached a record level of $2,179 per ounce over the weekend, recording an increase of 4 percent. A specialized report issued by Dar Al-Sabaek said on Sunday that gold approached the level of $2,200 per ounce in the middle of last week’s trading, driven by strong expectations about the imminent reduction in US interest rates and the end of the financial tightening pursued by the US

Federal Reserve for the last two years.

The report added that what boosted gold prices was the continuation of tensions in the Middle East region, especially military operations in the Red Sea and the Bab Al-Mandab Strait, which threatens global trade, and thus many investors and speculators resort to the yellow metal as a safe haven against risks.

He explained that the prices of gold futures contracts for April delivery rose by 0.95 percent to a new record level of $2,185 per ounce, and is in conjunction with the stabilization of the US currency’s exchange value against other major currencies and the decline in 10-year treasury bond yields to 4 percent. He stated that the Federal Reserve indicated last week that the period of financial tightening would soon end by next June which would increase the attractiveness of investment assets, especially gold.

He stated that analysts will closely monitor the reports that will be issued this week on inflation rates, the performance of the American retail market, the consumer confidence index, and industrial production numbers, all of which are factors that directly affect gold trading in the forthcoming period. Regarding the local market, the Dar Al-Sabaiq report stated that the price of a gram of 24 karat gold reached KD 21.350 (about $65), while the price of a gram of 22 karat gold reached KD 19.590 (about $60), while silver closed at KD 285 per kg.

It is noteworthy that the ounce is one of the units of mass measurement and is used in a number of different systems of measurement units. It is also called the ounce and is equal to 28.349 grams, while as a unit of measurement for precious metals it is equal to 31.103 grams. — KUNA