KUWAIT CITY, Jan 12, (KUNA): Gold prices stayed strong in the Kuwaiti market last week, reflecting the metal’s global safe-haven status. According to a report issued by Dar Al-Sabaek Kuwait, the price of 24-carat gold reached around KD 44.520 per gram, while 22-carat gold traded near KD 40.810 per gram. Silver stabilized at approximately KD 873 per kilogram. Globally, gold closed last week at $4,510 per ounce, posting weekly gains of over four percent, marking one of its strongest weeks since the start of the year. The rise was driven by weak U.S. economic data and escalating geopolitical risks, which redirected investors toward safe-haven assets, with gold at the forefront.

February gold futures rose about 0.9 percent on Friday, equivalent to more than $40, closing near $4,515 per ounce. Prices touched $4,517 during trading, approaching the alltime high of $4,549, signaling strong investment demand despite the U.S. dollar remaining relatively strong. The increase followed the release of the U.S. December jobs report, which showed only about 50,000 new positions added, far below expectations and below the revised previous month’s figures. The unemployment rate fell to 4.2 percent, but concerns about slowing employment growth fueled speculation that the Federal Reserve may cut interest rates in 2026 to support economic growth.

Market expectations currently reflect a potential interest rate reduction of 50 to 56 basis points this year, providing strong support for gold as a non-yielding asset. Meanwhile, housing indicators also showed continued slowdown, with building permits and housing starts declining compared with previous months, reflecting pressure on the real estate sector tied to interest rates. Furthermore, the preliminary University of Michigan Consumer Sentiment Index came in better than expected, though rising medium-term inflation expectations limited the positive impact and maintained concerns over U.S. household purchasing power. In bond markets, U.S. 10-year Treasury yields remained near four percent, yet strong gold buying persisted amid safe-haven demand.

Geopolitical tensions in the Middle East, Venezuela, and Eastern Europe, along with renewed U.S. measures against Iran and Venezuela, further supported precious metal prices. Government demand also played a major role. The Chinese Central Bank continued its gold-buying program for the 14th consecutive month, reducing global supply and strengthening the upward price trend.

Technically, gold remains in a bullish trend as long as prices stay above $4,500 per ounce, with momentum indicators nearing new highs, opening the way to test the all-time high of $4,549 in the coming period. In addition, silver’s performance was more volatile but stronger in percentage terms, narrowing the gap with gold and signaling growing investor interest in the metal relative to gold. Markets are now focusing on upcoming U.S. economic data, including the Consumer Price Index, Producer Price Index, and retail sales, which will shed light on inflation trends and consumer spending. Investors are also watching weekly jobless claims, regional manufacturing indicators, and Federal Reserve officials’ speeches for signals on the timing and scale of interest rate cuts. Economic data from Europe, China, and Japan, including industrial production, GDP, and trade balances, are also expected to influence global risk appetite and the direction of gold in the near term. The report concluded that gold’s strong performance at the start of 2026 reinforces its role as the most important hedging tool amid economic volatility and rising geopolitical uncertainty, cementing its importance in investors’ and institutions’ portfolios worldwide.