- Locally, gold prices continued to reflect global market movements. The report said the price of 24-karat gold reached around 40.800 Kuwaiti dinars per gram, while 22-karat gold stood at approximately 37.400 Kuwaiti dinars per gram.
- The price of silver was reported at around 684 Kuwaiti dinars per kilogram.
Gold prices closed last week’s trading at $4,054 per ounce, recording limited weekly gains after recovering from the previous session’s losses, as global markets continued to navigate heightened geopolitical tensions in the Middle East and rising energy prices.
A report by Dar Al Sabaik said the precious metal remains under pressure despite the late-week recovery, with expectations that interest rates could remain elevated for an extended period reducing the attractiveness of gold as a non-yielding asset.
The report noted that gold has experienced notable declines in recent months following the escalation of tensions between the United States and Iran, as investors shifted focus towards inflation risks linked to higher oil prices rather than increasing exposure to gold as a traditional safe-haven asset.
Gold prices stabilized near the $4,050-$4,065 per ounce range at the end of the week after falling around 2 percent in the previous session, as traders assessed the impact of geopolitical developments, energy prices and the outlook for US monetary policy.
Fed Policy in Focus
Market attention remains focused on the upcoming meeting of the US Federal Reserve, with expectations largely pointing to interest rates remaining unchanged. However, investors continue to monitor the possibility of future rate increases if inflationary pressures persist.
Dar Al Sabaik said rising oil prices were the biggest factor influencing markets last week, driven by continued tensions in the Middle East and concerns over possible disruptions to energy supplies.
The report explained that sustained high energy costs could increase production and transportation expenses, potentially encouraging central banks to maintain tighter monetary policies for longer.
It added that elevated US interest rates continue to support higher returns on Treasury bonds and a stronger dollar, increasing the opportunity cost of holding gold compared with interest-generating assets.
However, the report noted that a slight decline in US Treasury yields and continued dollar movements provided some support for gold prices and helped limit further losses.
Technical Outlook Remains Cautious
From a technical perspective, Dar Al Sabaik said gold’s overall trend remains weak despite the recent recovery, as prices continue to trade below key moving averages and momentum indicators point to limited buying strength.
The report identified $4,000 per ounce as the key psychological support level, followed by $3,941 and $3,886, while $3,500 remains an important long-term support level.
On the upside, gold faces resistance at $4,100 per ounce, followed by $4,165 and $4,200. A move above these levels would be needed to improve the technical outlook and restore stronger upward momentum.
Markets Await Economic Data
Investors are closely watching upcoming US economic indicators, including GDP data, personal income and spending figures, consumer confidence readings, trade balance data and the employment cost index.
Markets are also monitoring the Bank of England’s interest rate decision, along with economic growth and inflation data from the eurozone.
Dar Al Sabaik said gold prices in the coming period will largely depend on the direction of US monetary policy, oil price movements and developments in Middle East geopolitical tensions.
The report said continued inflation pressures and higher energy prices could limit gold’s short-term gains by encouraging central banks to maintain restrictive policies. However, gold could regain momentum if geopolitical tensions ease, oil prices decline and expectations of further rate increases weaken.
Local Gold Prices in Kuwait
Locally, gold prices continued to reflect global market movements. The report said the price of 24-karat gold reached around 40.800 Kuwaiti dinars per gram, while 22-karat gold stood at approximately 37.400 Kuwaiti dinars per gram.
The price of silver was reported at around 684 Kuwaiti dinars per kilogram.
