The price of gold has decreased to $3,875 per ounce at the end of last week. This sharp decline is due to rising energy prices, growing concerns about inflation, and expectations for continued tight U.S. monetary policy.
Pressure on the Gold Market
Widespread selling in global technology stocks and concerns over heavy costs related to artificial intelligence have forced investors to sell assets and hedge margin positions. These factors have put additional pressure on gold prices, despite ongoing geopolitical tensions.
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Market Outlook and Key Data
Markets are starting the new week with anticipation for key U.S. data, including purchasing managers' indices in the manufacturing and services sectors, job openings, and private sector employment statistics. The non-farm payroll report, set to be released on November 6, could impact market expectations and indicate that strong hiring and wage growth may keep interest rates elevated.
Additionally, markets are monitoring the U.S. midterm elections on Tuesday to assess their impact on fiscal policy, government spending, and deficits. Comments from Federal Reserve officials ahead of the December meeting are also significant.
Oil prices and developments in the Middle East will be other key factors in the market, as concerns about supply disruptions and transportation routes persist. The OPEC+ meeting is also expected to provide signals regarding production levels.
Reports indicate that high oil prices affect gold in two ways. On one hand, demand for gold as a hedge against inflation and geopolitical risks may increase; on the other hand, higher energy costs could delay the easing of monetary policy.
Investors are also tracking earnings from major companies, especially in technology and artificial intelligence. China's purchasing managers' indices will also be watched as a gauge for global demand in industries and precious metals.
The price of gold in Kuwait for 24-carat gold is set at around 39.34 dinars (approximately $127), and for 22-carat gold at around 36 dinars (approximately $116). The price for one kilogram of silver is about 553 dinars ($1,700).
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