KUWAIT CITY, Dec 14: Gold prices in Kuwait mirrored global market trends, with 24-karat gold reaching around KD 42.5 per gram (about $138) and 22-karat gold around KD 38.78 (about $126). Also, one kilogram of silver was priced at approximately KD 660 (around $2,157). According to reports from Dar Al-Sabaek Company in Kuwait, these movements reflect a global trend, as gold continues to attract investors as a safe haven amid ongoing economic uncertainty and geopolitical tensions. Globally, gold maintained its appeal as a secure investment, recording weekly gains of nearly two percent to close at $4,300 per ounce. Despite profit-taking limiting its momentum, prices approached $4,353, signaling a temporary market cooling phase without affecting the overall upward trend.

This performance comes at a time of limited US economic data, particularly inflation figures, making it difficult to assess the near-term intentions of the US Federal Reserve. Several Federal Reserve officials have noted that inflation remains above target, urging caution in accelerating monetary easing, especially as some economic data have been distorted by government shutdowns. Weakness in certain US labor market indicators, particularly the rise in unemployment claims, has supported market expectations of potential interest rate cuts in the coming months, benefiting gold.

US Labor Department data showed initial unemployment claims rose to 236,000 for the week ending December 6, the highest level in over two months, reflecting a gradual slowdown in the labor market. The overall picture suggests a loss of momentum previously enjoyed by the US economy, which strengthens demand for hedging assets, with gold at the forefront. Geopolitical tensions continue to support gold prices, as stalled peace talks between Russia and Ukraine and escalating political rhetoric keep global market anxiety high, sustaining investor interest in gold as a hedge against political and economic risks. US Treasury yields saw modest increases, with the 10-year yield around 4.19 percent, while real yields fell to approximately 1.78 percent, providing additional support for gold prices due to their inverse relationship. From a technical perspective, the trend for gold remains upward, with prices trading above $4,300 amid strong buyer dominance. Momentum indicators, including the Relative Strength Index, are near overbought levels, reflecting robust demand despite the possibility of short-term corrections.

If gold breaks the $4,353 per ounce level, it could test the historical high of $4,381, followed by $4,400, $4,450, and $4,500 in the medium term. Conversely, a decline below $4,285 could push prices down to $4,250 and then $4,200 as key support levels in the coming period. This week, markets are expected to release significant economic data, including delayed US labor reports, inflation figures, retail sales, interest rate decisions, and speeches by major central bank officials. Dar Al-Sabaek Company expects these developments to play a pivotal role in determining gold’s direction in the coming period, with the yellow metal remaining supported “as long as monetary uncertainty and geopolitical risks persist in the global economy.” (KUNA)