KUWAIT CITY, Aug 24: Gold prices climbed last week, buoyed by mounting expectations of a U.S. interest rate cut and heightened geopolitical risks, according to a report issued by Kuwait’s Dar Al-Sabayek company.

Gold closed Friday at $3,371 per ounce after touching a daily high of $3,378, supported by a sharp decline in the U.S. dollar index, which dropped more than 1 percent against a basket of major currencies, alongside a fall in U.S. 10-year Treasury yields to 4.261 percent.

The report noted that comments from Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium on Friday played a key role in shaping sentiment. Powell signaled rising downside risks to the labor market despite persistent inflationary pressures, suggesting a shift in monetary policy could be imminent.

Markets reacted swiftly, pricing in a near-90 percent probability of a rate cut at the Fed’s September meeting, with one or two more cuts anticipated before year-end. This prospect revived investor appetite for safe-haven assets, boosting gold demand amid renewed geopolitical concerns, particularly a recent escalation of Russian military activity in Ukraine.

The report added that seasonal factors also supported the metal, as a summer slowdown in other asset classes encouraged investors to hedge in gold.

Silver, meanwhile, outperformed gold, ending the week at its highest level since September 2011. The gains were attributed to robust industrial demand and expectations of prolonged U.S. dollar weakness.

Despite these developments, Dar Al-Sabayek highlighted that gold has remained in a relatively narrow trading band since April, fluctuating between $3,300 and $3,500 per ounce without breaching its all-time high. Technical indicators suggest that a break above $3,465 could open the way to $3,500 and possibly $3,600 per ounce, though analysts remain split — some cautiously optimistic about further gains in the near term, while others stress that outcomes depend on the Fed’s approach to incoming inflation data.

Looking ahead, the report pointed to the upcoming release of personal consumption expenditure and unemployment rate figures in early September as critical markers for the Fed’s policy direction. If the data confirm labor market weakness and slowing inflation, the path could be cleared for further rate cuts, lending additional support to gold prices.

Locally, these global moves were mirrored in regional markets. The price of 24-karat gold reached around 33,170 Kuwaiti dinars per kilogram, while 22-karat gold stood at about 30,400 dinars per kilogram. The price of silver closed at 426 dinars per kilogram.