KUWAIT CITY, Jan 25: Gold prices ended a historic week hovering near the USD 5,000-per-ounce level, marking successive record highs amid mounting global geopolitical and economic risks, fading confidence in US assets, and a weaker dollar, which fueled demand for precious metals as a safe haven.

A report released Sunday by Kuwaiti company Dar Al-Sabaik said gold posted a record weekly close near USD 4,987 per ounce, registering gains of more than 8 percent, its strongest weekly performance since the COVID-19 pandemic in 2020. Prices also touched an intraday peak near USD 4,990 per ounce during the week amid heightened concerns about tensions between the United States and NATO over Greenland, continued uncertainty surrounding US trade policy, and questions about the independence of the US Federal Reserve.

The report said the strong performance was supported by the US dollar index falling to its lowest level in several months, relative stability in US Treasury yields, and growing expectations that accommodative monetary policy could extend through 2026, despite the absence of expectations for an immediate interest rate cut at the Federal Reserve’s upcoming meeting.

Gold saw sharp volatility during the week, starting near USD 4,650 per ounce before accelerating higher on strong Asian demand. The rally gained momentum with the return of US liquidity, pushing prices successively above the USD 4,800 and USD 4,900 levels and testing the psychological USD 5,000 mark by week’s end, signaling strong buying momentum and the likelihood of continued gains in the near term.

Silver recorded an even stronger performance, with futures contracts surging above USD 100 per ounce for the first time in history and posting weekly gains exceeding 14 percent. The report attributed the surge to strong investment demand and substantial inflows into metals with both investment and industrial uses, allowing silver to outperform gold in percentage gains since the start of the year.

Despite warnings about the potential impact of elevated prices on future industrial demand, the report noted that persistent dollar weakness and heightened global volatility have kept silver in focus, with expectations of increased price fluctuations in the coming period.

Dar Al-Sabaik said technical indicators suggest gold remains positioned to retest the USD 5,000 level in the near term. At the same time, the USD 4,900 area is seen as a key support level in the event of temporary profit-taking. Overall prospects remain supportive of a continued upward trend for both gold and silver as long as geopolitical uncertainty and dollar weakness persist, reinforcing their role as leading defensive assets.

The report described the final week of January as pivotal for global markets, with investors awaiting the Federal Reserve’s first policy decision of the year amid differing views within the Open Market Committee on the future path of interest rates. Markets are also watching earnings reports from major companies, including Apple, MetaTrader, and Microsoft, which are expected to provide key signals on demand for artificial intelligence and investment in data centers.

In addition, markets are awaiting the release of key US data, including durable goods orders and the Producer Price Index, along with GDP figures for the eurozone and Canada, inflation data from Germany, Spain, and Australia, and purchasing managers’ indices from China, developments expected to play a major role in shaping the outlook for the global economy and financial markets.

Locally, Dar Al-Sabaik said the global rally was reflected in Kuwaiti prices, with 24-karat gold reaching about 49.350 Kuwaiti dinars per gram (around USD 150), 22-karat gold at about 45.240 dinars per gram (around USD 138), and silver at approximately 1,145 dinars per kilogram (around USD 3,500).

An ounce is a unit of mass used in several measurement systems. In precious metals trading, the troy ounce is used and equals 31.103 grams, compared with 28.349 grams for the standard avoirdupois ounce.