KUWAIT CITY, Feb 1:  Gold prices fell sharply at the end of last week, closing at $4,892 per ounce, as investors engaged in profit-taking following historic highs above $5,600 per ounce, according to a report by Kuwaiti company Dar Al-Sabaik on Sunday. February gold futures contracts dropped 11.37 percent, or $604, reflecting a brief market correction after six consecutive months of gains, the longest streak since September 2005.

Locally, the decline was mirrored in the Kuwaiti market, where 24-karat gold was priced at approximately 48.600 Kuwaiti dinars ($148) per gram, 22-karat gold at 44.45 dinars ($135), and silver at 1,015 dinars ($3,327) per kilogram. Despite the pullback, both gold and silver recorded strong monthly gains, with gold up nearly 9 percent and silver rising 11.3 percent in January, reflecting continued investor demand amid global economic uncertainty.

Dar Al-Sabaik attributed the sharp correction to profit-taking after gold’s meteoric rise, combined with a stronger US dollar and rising Treasury yields, as investors reassessed US monetary policy. The report noted that strong US inflation data, including a 3 percent year-on-year increase in the Producer Price Index for December and a 3.3 percent rise in the core index, reinforced expectations for a steady Federal Reserve policy, supporting the dollar and influencing gold prices.

Technical analysis indicates that gold remains in a bullish trend, with the $5,000 per ounce level identified as a key psychological barrier. Analysts view current volatility as a healthy correction, offering potential buying opportunities in the medium and long term, supported by geopolitical tensions, trade disputes, and central banks’ continued accumulation of gold reserves.

Silver experienced sharper movements, with February futures contracts falling 31 percent to $78.30 per ounce, but still recorded a nine-month consecutive gain – the longest streak in its history. Investors are closely watching upcoming US employment data, purchasing managers’ indices, and decisions from major central banks, amid expectations of ongoing market volatility.