Gold hits KD 41.350 per gram in Kuwait

KUWAIT CITY, July 12: Gold prices in Kuwait reached approximately KD 41.350 per gram for 24-karat gold (about $134), while 22-karat gold was priced at around KD 37.900 per gram (about $123). The price of one kilogram of silver stood at approximately KD 701 (about $2,278). According to a report issued by the Kuwaiti company Dar Al-Sabaek on Sunday, gold prices ended last week’s trading at $4,120 per ounce, recording weekly losses of about 0.5 percent amid pressure from a stronger US dollar, higher US Treasury yields, and continued geopolitical tensions in the Middle East.

Gold declined during Friday’s session to $4,103 per ounce before recovering some of its losses by the close of trading following a session marked by sharp volatility. Gold movements came after US President Donald Trump announced that the United States had agreed to resume talks with Iran, while also confirming the end of the ceasefire agreement between the two sides. This kept markets cautious amid concerns over the possibility of further escalation in regional tensions. The yield on 10-year US Treasury bonds increased amid growing concerns that rising energy prices could intensify inflationary pressures, reinforcing expectations that monetary policy would remain restrictive in the coming period. The minutes of the latest US Federal Reserve meeting showed that policymakers remain concerned about inflation.

Some officials maintained that interest rate increases could remain an option if price pressures persist, while a decline in initial unemployment claims highlighted the continued strength of the US labor market. Furthermore, oil prices recorded weekly gains due to rising geopolitical tensions, increasing concerns over global inflation. This followed a warning from the International Energy Agency that continued escalation could undermine expectations of an oil market surplus next year if supplies are disrupted. Regarding physical demand, the report stated that gold traded in the Indian market at notable discounts, indicating weaker demand, while the Chinese market remained stable due to continued purchases by the Chinese central bank, which recorded its largest monthly increase in gold reserves in more than two and a half years during June. On the technical side, the report said gold continues to move within a downward trend, with lower highs and lower lows continuing to form.

Trading below the 200-day moving average has kept short-term negative pressure in place. The Relative Strength Index indicates continued weak momentum, suggesting that any upward movement could face renewed selling unless gold breaks through key resistance levels. The report identified the first support level at $4,021 per ounce, followed by $3,941 and $3,886. The first major resistance level stands at $4,200, and a break above it could open the way toward $4,300 before reaching the main resistance level of $4,493. For the current week, the report explained that investors are focusing on the release of US consumer price index data, considered the most important factor in determining expectations for monetary policy. Attention is also directed toward Federal Reserve Chair testimony before Congress and the beginning of the earnings season for major US companies. The expected data also includes consumer confidence indicators, trade and housing figures in the United States, as well as GDP and industrial production data from the United Kingdom and the eurozone.  (KUNA)