Gold hit its highest level in two months, reaching USD 1,772 per ounce at the end of last week’s trading, with gains exceeding five percent. In a report, Kuwait Sabayik Company stated Sunday that gold prices rebounded again, with continued optimism about easing the pace of raising US interest rates, after the Consumer Price Index (CPI) report was issued, which showed a decrease in inflation in the US market to 7.7 percent on an annual basis during the last month.
The report quoted head of strategic planning at Sabyik Company Adel Al-Fadhli as saying that the inflation fell to 7.9 percent, with a decrease in the US bond yield (for 10 years) by 28 points to close at 3.83 percent.
He added that, amid these developments, gold was able to gain investors’ confidence again after the US dollar’s exchange rate fell against other major currencies by 1.6 percent at 106.44 points, which made the price of gold rise throughout the past week.
He explained that global markets expect the possibility of an increase in US interest rates by 50 points at the meeting of the US Federal Reserve (Central Bank) early next December, an increase that indicates restoring control over inflation level, thus easing raising interest rates on the US dollar, which means more recovery in gold prices.
The gold futures contracts (for December delivery) rose at a settlement by 0.9 percent, equivalent to USD 15.70 per ounce, at the end of last week’s trading. Which indicates an improvement after the strong declines that affected gold during the second and third quarters of this year, he added. Al-Fadhli said that the most important central banks around the world issued data last week about the quantities they held of the yellow metal, as they bought a record amount of gold after purchasing 400 tons of the precious metal in the third quarter of 2022, raising the total purchases to 673 tons until the last quarter of the year, and purchases this big have not been seen since 1967 and are the largest one so far.
Regarding the local market, gold prices closed at KWD 17.55 per gram (24) karat and KWD 16 for (22) karats, while silver recorded KWD 265 dinars per kilogram.