Kuwait’s gold market sees soaring demand despite record prices
- Gold trading prices in Kuwait rose by 1.39% yesterday, with 24-karat gold reaching 41.593 dinars per gram, up 571 fils from the previous day. 22-karat gold climbed to 38.162 dinars per gram, up 524 fils.
- On global markets, spot gold rose 0.4% to $4,263.59 per ounce, recovering from Friday’s 1.8% drop—its largest since mid-May. Despite fluctuations, gold remains on track for its best weekly performance since April, after touching an all-time high of $4,378.69 per ounce earlier this month.
The local gold market has witnessed a remarkable surge in demand from both buyers and investors in recent days, despite prices continuing to climb to historic highs.
According to official statistics for the second quarter of 2025, Kuwait recorded a 119.3% increase in gold import volumes, equivalent to 202.5 million dinars, along with a 9.1% rise in imports of jewelry and parts made of precious metals, valued at 110.3 million dinars.
Gold price analyst Nasser Al-Attar told Al-Rai that the volume of locally recycled gold has surged by more than 180% compared to last year.
He noted that local gold products are gaining strong market traction due to their higher weight, distinctive craftsmanship, and lower costs—benefiting from the absence of shipping fees, customs duties, and other charges.
“Local jewelry competes directly with imported gold because of its quality and affordability,” Al-Attar said, adding that the diversity of sales tools—ranging from bank trading screens and corporate apps to home delivery services—has expanded demand across the market.
He revealed that gold prices have reached $3,780 per ounce, with some paid transactions recorded as high as $4,350, driven by widespread individual purchases.
Market Implications and Forecasts
Al-Attar described the recent price surge as an early warning for investors to hedge against ongoing volatility. He attributed gold’s historic rally to increased central bank purchases and heightened demand amid geopolitical tensions.
He forecast that gold prices could exceed $4,500 per ounce by 2026, though short-term corrections may occur, bringing prices down to around $3,970 due to profit-taking and capital shifts toward silver.
Kuwaiti Gold’s Distinct Edge
Gold analyst Iman Al-Abdul Ghafour highlighted that Kuwaiti gold production is globally recognized for its purity and clarity, with most local shops relying on domestic manufacturing.
“Local production is not only more economical but also among the most distinguished in the world,” she said, noting that demand tends to increase alongside price hikes—reflecting strong consumer confidence in gold as a secure asset.
Al-Abdul Ghafour added that the market trend has recently shifted away from large bullion purchases toward smaller jewelry sets with lower manufacturing costs.
Price Movements
Gold trading prices in Kuwait rose by 1.39% yesterday, with 24-karat gold reaching 41.593 dinars per gram, up 571 fils from the previous day. 22-karat gold climbed to 38.162 dinars per gram, up 524 fils.
On global markets, spot gold rose 0.4% to $4,263.59 per ounce, recovering from Friday’s 1.8% drop—its largest since mid-May. Despite fluctuations, gold remains on track for its best weekly performance since April, after touching an all-time high of $4,378.69 per ounce earlier this month.
