Gold prices in global markets logged a significant leap during last week’s trading, with around USD 1,990 per ounce, marking the highest level since April 2022.
A report issued by local Dar Al-Sabaek added that investors continue to take refuge in the precious metal in the aftermath of major banking disruptions experienced by a number of American and European banks, as fears of a potential recurrence of the 2008 economic crisis grow.
Due to the fragility of medium-sized banks in America and Europe, some of them declared bankruptcy while others were rescued by larger banks. This financial instability had investors scrambling towards gold prompting the large leap from USD 1,860 to USD 1,990 with estimations of it reaching USD 2,000 should these financial risks continue to mount.
Markets are awaiting American Federal Reserve meeting (the US central Bank) set to be held on Wednesday. Investors’ concerns were beginning to subside after 11 banks declared pumping USD 30 billion in American First Republic bank and Swiss bank Credit Suisse announced taking out a USD 54 billion loan from the Swiss National Bank to boost liquidity and avoid closure.
However, concerns regarding the sturdiness of the banking system picked up pace in light of Silicone Valley Bank parent company filing for bankruptcy protection. As for local markets, Dar Al-Sabaek stated that a 24-carat gram of gold on Friday reached KD 19.50 whereas the 22 carat gram reached KD 17.80 and the price of silver was 268 per kilogram.