Kuwait gold rides global wave to KD 43.6

Gold prices in Kuwait experienced a notable increase last week, aligning with positive trends in global markets. The price of 24-karat gold climbed to approximately KD 43.6 per gram, equivalent to about $141, while 22-karat gold was priced around KD 39.97 per gram, or $130. This surge in precious metal values was also reflected in silver prices, which rose to approximately KD 727 per kilogram, or $2,366.

Globally, gold concluded the week on a high note, marking its second consecutive week of gains. The upward momentum was primarily fueled by a weakening US dollar and diminished expectations of an interest rate hike by the Federal Reserve at its upcoming September meeting. Reports from Kuwait-based Dar Al-Sabaek Company indicated that the price increase followed a series of weaker-than-expected US economic data.

US retail sales fell by 0.6 percent in July, the first decline after five months of growth and below market forecasts. Inflation data also showed easing pressures, further bolstering the belief that the Federal Reserve might hold off on raising interest rates. The probability of a September rate hike dropped significantly, reducing the opportunity cost of holding gold. Lower US Treasury yields also contributed to the precious metal's rise.

Investor attention is now shifting to the minutes from the US Federal Reserve and European Central Bank meetings. These documents could offer crucial signals regarding future interest rate policies and the overall direction of monetary strategy in the coming months. Additionally, ongoing geopolitical developments in the Middle East and central bank purchasing, such as China's continued additions to its gold reserves, continue to provide fundamental support for gold prices.