Kuwait  - Gold prices in the Kuwait market followed global trends last week, with 24-carat gold reaching about KD 51.28 per gram (around 167.47 US dollars) and 22-carat gold at approximately KD 47 (about 153 dollars).

Silver prices remained stable at about KD 928 per kilogram (3030 dollars) amid continued local demand for precious metals for savings and investment, reflecting confidence in gold as a main hedge against economic uncertainty.

On the international front, gold prices closed last week at 5171 dollars per ounce amid volatility and uncertainty in global markets, driven by a mix of economic factors and geopolitical developments. According to a report released by Dar Al-Sabaek Kuwait, recent US economic data increased demand for gold as a safe haven, while investors continue to evaluate global growth prospects and the direction of US monetary policy. Gold price movements followed the release of US labor market data for February, which revealed unexpected weakness in the performance of the world’s largest economy.

The unemployment rate rose to 4.4 percent, exceeding expectations of 4.3 percent, after a sudden drop in non-farm payrolls, signaling a potential slowdown in economic activity in the coming period. This weak performance in the US labor market led traders to reassess expectations for US monetary policy, weighing the possibility of a gradual economic slowdown against the Federal Reserve’s continued hawkish stance on interest rates amid ongoing concerns over inflation. Market expectations currently suggest the Federal Reserve may cut interest rates later this year if economic weakness continues, increasing gold’s appeal as a non-yielding asset that benefits from a lower opportunity cost.

Despite some pressure on gold prices during the week due to a strong US dollar and rising US Treasury yields, investment demand for gold remained supported by global economic uncertainty and ongoing geopolitical tensions in the Middle East. Dar Al-Sabaek’s report also highlighted growing market concerns over the prolongation of regional conflicts and their potential effects on energy markets and global supply chains, which could contribute to relatively high inflation levels in many economies. It explained that US dollar movements played a major role in shaping gold price trends during the week, with periods of dollar strength limiting gold gains due to the inverse relationship between them, while dollar weakness following weak economic data provided support for gold prices in some sessions.

Investors continue to closely monitor US inflation and economic growth data to gauge the Federal Reserve’s next steps, given the delicate balance between controlling inflation and maintaining economic stability. Long-term structural factors continue to support gold prices, as many central banks worldwide are increasing their gold reserves to diversify assets and reduce reliance on the US dollar, providing additional support to prices over the medium and long term. Rising global sovereign debt and volatility in stock and bond markets are encouraging more investors to increase their gold holdings as a hedge against financial and economic risks. From a technical standpoint, gold is currently trading within a range of 5100 to 5200 dollars per ounce, with 5100 acting as an important support level that could limit near-term declines, while 5200 and above represents a key resistance.

Breaking this level could open the way for testing higher price points in the coming period. Dar Al-Sabaek’s report indicated that technical indicators point to continued upward momentum for gold in the medium term, despite short-term fluctuations caused by economic data, US dollar movements, and bond yields. The report confirmed that gold’s performance last week reflects a balance between supporting and pressuring factors, with the metal maintaining historically high levels, affirming that this is supported by rising investment demand and its role as a hedge against global economic and geopolitical risks, while investors await further economic data and political developments that could shape future market trends. It is worth mentioning that an ounce is a unit of mass used in various measurement systems, also called an avoirdupois ounce, equivalent to 28.349 grams. As a unit for precious metals, it equals 31.103 grams. 

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