Kuwait gold buyers turn to jewelry and coins amid bullion shortage
. . . as prices eye record highs in volatile markets
- Latest report from World Gold Council indicated global gold prices recently retreated to their lowest levels since the start of the year.
- Decline attributed to several factors, including rising real bond yields, expectations of interest rate hikes in 2026, profit-taking, and liquidity-driven market fluctuations.
- Despite the recent dip, WGC noted that gold is likely to find strong support in the $4,066–$4,090 per ounce range, aligning with the 200-day moving average and key technical levels tied to the upward trend observed between 2022 and 2026.
Local markets have recently witnessed a renewed surge in gold buying activity, extending beyond traditional bullion to include jewelry and coins, as investors position themselves for anticipated price gains by the end of 2026, reports Al-Rai daily.
The renewed appetite follows forecasts by major financial institutions, including JPMorgan, which projected in early March that continued central bank purchases and strong investor demand could push gold prices to as high as $6,300 per ounce by year-end.
This growing demand comes amid a tightening supply of bullion in the local market, coupled with persistent global interest in gold as a safe-haven asset.
Heightened economic and geopolitical uncertainty — particularly linked to regional tensions and the ongoing conflict in the Middle East — has further reinforced the shift among investors and savers toward the precious metal.
During a field survey in the gold market at Al-Mubarakiya, traders confirmed sustained demand for gold bars and liras, alongside a noticeable decline in available quantities due to heavy buying.
As a result, buyers have increasingly turned to five main alternatives: “Al-Mardouf” pieces resembling Ottoman liras, Emirati-style prayer beads, jewelry designed to mimic 21-karat gold bars, pre-owned gold items, and heavy-weight jewelry with minimal manufacturing costs.
Retailers also reported a growing preference for low-making-charge jewelry as consumers seek to maximize investment value.
Shop owners noted that they are purchasing bullion at elevated prices to meet demand, reflecting strong market competition and limited supply.
In the local market, gold prices stood at approximately 44,900 dinars for 24-karat, 41,066 dinars for 22-karat, 39,200 dinars for 21-karat, and 33,600 dinars for 18-karat gold.
Globally, the ounce traded at $4,493, marking a recent increase of 2.54% driven by strong demand dynamics.
Some investors have also begun liquidating older, heavier jewelry to capitalize on price increases, using the proceeds to reinvest in newer designs. In one example, a piece purchased for 1,450 dinars two years ago was sold for 3,700 dinars, highlighting the profitability of gold holdings amid rising prices.
This trend underscores a broader shift in consumer behavior, with gold jewelry increasingly viewed not merely as adornment but as a reliable store of value and an effective investment tool in times of market volatility.
Meanwhile, the latest report from the World Gold Council indicated that global gold prices recently retreated to their lowest levels since the start of the year.
The decline was attributed to several factors, including rising real bond yields, expectations of interest rate hikes in 2026, profit-taking, and liquidity-driven market fluctuations.
Despite the recent dip, the council noted that gold is likely to find strong support in the $4,066–$4,090 per ounce range, aligning with the 200-day moving average and key technical levels tied to the upward trend observed between 2022 and 2026.
