KUWAIT CITY, Dec 7: The local gold market saw the price of a gram of 24-karat gold reach KD 41.23 (approximately $135) last week, while 22-karat gold was priced at around KD 37.38 (approximately $123), reports Al-Seyassah daily. According to a report released by the Kuwaiti Bullion House, one kilogram of silver was trading at KD 624 (approximately $2,036) in Kuwait. Globally, gold prices closed last week at $4,198 per ounce, supported by growing expectations of a US interest rate cut and ongoing geopolitical tensions in several regions.

A report by the Kuwaiti company Dar Al-Sabaek issued on Sunday noted that US inflation remaining near three percent reinforces expectations of a more flexible monetary policy, pointing to potential further interest rate cuts. This trend enhances gold’s appeal as a safe haven amid increasing global economic uncertainty. The report highlighted the upcoming US Federal Reserve meeting as the main focus of this week’s economic calendar. It explained that official US data beyond September is unavailable due to the recent government shutdown, making markets particularly sensitive to any signals from the Federal Reserve. The US is set to release delayed economic data, including October jobs figures and Q3 2025 employment costs, while Canada, Switzerland, Australia, Brazil, and Turkey are preparing to announce new interest rate decisions.

China will release inflation and production data for November, and the UK, Germany, and Italy have a busy week of economic reports covering growth, trade, and industrial production. These developments collectively support a bullish outlook for gold prices, particularly amid slowing inflation and weakening US labor market indicators. Gold futures for February delivery closed the week at $4,243 per ounce, while the dollar index remained steady at 98.9 points. The yield on 10-year Treasury bonds rose to 4.14 percent, limiting gold’s gains but not preventing it from staying above $4,190 per ounce. Analysts are divided between neutral and optimistic, though major market investors lean toward a bullish scenario. Observers believe that surpassing the $4,265 per ounce level could trigger a retest of the all-time high near $4,380 per ounce. Some forecasts even suggest that gold could reach $5,000 per ounce by 2026, fueled by ongoing central bank purchases and declining global interest rates.