KUWAIT CITY, Aug 3: Precious metal prices in Kuwait witnessed a noticeable increase at the end of last week, driven by strong gains in global gold markets. According to a report issued by Dar Al- Sabaik Company on Sunday, the price of 24-karat gold in the local market reached approximately KD 33.130 per gram, while 22-karat gold stood at KD 30.370 per gram. The price of one kilogram of silver rose to KD 407.

The report attributed the local rise to significant movements in international markets, where gold ended the week with a strong gain, closing at $3,362 per ounce. This upward trend was fueled by weaker-than-expected U.S. employment data and a decline in the value of the U.S. dollar, both of which boosted investor demand for safe-haven assets such as gold. In detail, the U.S. economy added only 73,000 jobs in July, falling short of the expected 110,000. This spurred increased speculation that the U.S. Federal Reserve may cut interest rates at its upcoming September meeting. Futures contracts showed a 76 percent probability of a 25-basis-point rate cut.

Also, U.S. Treasury yields dropped significantly, with the ten-year bond yield falling to 4.228 percent. The dollar also weakened sharply, losing more than 0.8 percent against major currencies on Friday, further driving gold prices higher. The report also highlighted mounting global trade tensions, including a new U.S. tariff package targeting dozens of countries. Some tariffs reached as high as 41 percent on countries not covered by trade agreements with Washington, and 40 percent on goods suspected of being rerouted through third parties. These developments coincided with escalating geopolitical tensions between Washington and Moscow, notably the deployment of U.S. nuclear submarines, which is seen by analysts as an escalatory move amid the Ukraine conflict.

By the end of the week, gold prices in the spot market had risen more than 2 percent on Friday alone, rebounding from a midweek dip to a one-month low of $3,268 per ounce. Looking ahead, Dar Al-Sabaik expects global markets to remain cautious this week due to the lack of major economic data, with investor attention likely to stay focused on the ongoing trade war and statements from Federal Reserve officials.(KUNA)