Gold prices showed stability at $1959 per ounce by the close of last week’s trading, following the release of positive US economic data that surpassed analysts’ expectations.
According to a specialized report from the Kuwaiti Dar Al-Sabaek Company, the US economy achieved a remarkable 2.4 percent growth, surpassing the projected 1.8 percent. This substantial increase instilled confidence among investors, leading to the current price level for gold, reports Al-Qabas daily.
The report highlighted that the US (durable goods orders) index experienced significant growth, while the unemployment rate declined to its lowest level of the year. Consequently, the US stock and bond markets witnessed a recovery.
Based on these positive indicators, the US Federal Reserve (the central bank) decided to raise interest rates by 25 basis points. Federal Reserve Chairman Jerome Powell left the possibility open for further interest rate increases if inflation remains at or above 2 percent.
Despite ongoing inflation, some analysts suggested that it is trending in a favorable direction. This could provide leeway for the US Central Bank to maintain interest rates during September, which is likely to support gold prices in the near future.
In terms of futures prices for August delivery, gold saw an increase of 0.75 percent, equivalent to $14.7, reaching $1960.4 per ounce. Concurrently, the dollar index, which gauges the performance of the US currency against other major currencies, experienced a slight decline of 0.15 percent.
The report anticipates a week packed with economic data, including payrolls, company profits, the factory orders report, and the purchasing managers’ index. These releases will directly impact gold’s performance in the upcoming period.
On the local market, the price of 24-carat gold concluded at 19.5 dinars per gram, while 22-carat gold was recorded at 17.9 dinars per gram. Additionally, silver closed at 287 dinars per kilogram.