Gold hits record high, surging 5% weekly

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KUWAIT CITY, April 8: Gold reached a new record high, closing at $2,230 per ounce at the end of last week’s trading, marking a weekly increase of 5 percent, reports Al-Jarida daily. According to a report issued by Kuwaiti Dar Al-Sabaek Company on Sunday, gold continued its upward trend for the third consecutive week, with futures prices (June delivery) rising by 1.6 percent to $2,345 per ounce. This surge was supported by geopolitical uncertainty, increased purchases by central banks, and speculation about a potential decrease in US interest rates. The report highlighted expectations that the Federal Reserve (the US central bank) may lower interest rates during its June meeting, particularly in light of robust job growth in the United States in March.

The US economy witnessed its highest job growth in 10 months in March, accompanied by a lower-than-expected unemployment rate, indicating a potential interest rate cut shortly. Financial officials in the US are reportedly awaiting “sustainable evidence” that inflation is approaching 2 percent before considering lowering interest rates. Investors are eagerly anticipating inflation data scheduled for release during the current week, which may influence the Federal Reserve’s decision-making process in the coming months. The report emphasized that geopolitical tensions are bolstering gold prices, as investors seek safe havens amidst escalating tensions in the Middle East. Economic data releases expected during the week include the minutes of the US Federal Open Market Committee meeting and producer prices. Moreover, interest rates in the euro zone and China will be closely monitored, alongside geopolitical developments in the Middle East, all of which could impact gold trends in the near term. In the local market, the price of 24-karat gold reached 23.2 dinars per gram, while 22-karat gold was priced at 21.27 dinars per gram. Additionally, the price of silver closed at 317 dinars per kilogram.

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