The gold price in Kuwait reached about $4,165 per ounce at the end of last week, a slight increase following recent significant declines and the price approaching $4,000. These market movements occur as investors look for economic data from the United States, particularly regarding inflation and interest rates.
Concerns about inflation and monetary policies
According to a report published by Dar Al-Sabbagh Company in Kuwait, this improvement in gold prices has not alleviated the existing pressures on this precious metal, as concerns about inflation in the United States and the possibility of tighter monetary policies in the coming months continue. The report states that gold prices are influenced by a combination of factors including inflation, interest rates, the value of the dollar, and treasury yields, as well as geopolitical risks and stock market volatility.
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Market developments and forecasts
U.S. consumer prices increased by 3.7 percent in September compared to last year, a figure that exceeds market expectations. This data has strengthened concerns about persistent inflationary pressures and increases the likelihood of difficulties in bringing inflation back to target levels. Additionally, forecasts regarding interest rate hikes in upcoming Federal Reserve meetings, especially in December, are also on the rise.
Markets are also paying attention to geopolitical developments in the Middle East and the war in Ukraine, which could affect demand for gold as a safe haven. Increased tensions may boost demand for gold as a protective measure, but rising oil prices due to supply disruptions could also lead to increased inflation and pressure on central banks to maintain high rates.
In the local market, the price of 24-carat gold is trading at 42 dinars (about $136) per gram, and 22-carat gold at 38.500 dinars (about $124) per gram. The price of one kilogram of silver has also reached about 632 dinars (about $2,050).
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