KUWAIT CITY, Jan 18:  Gold prices held steady at the end of last week’s trading after a notable decline, closing at USD 4,595 per ounce, according to a report by Kuwait’s Dar Al-Sabaik Company on Sunday.

The report attributed the recent dip to profit-taking and a relative easing of geopolitical tensions, amid expectations that U.S. monetary policy will remain tight for an extended period. Gold futures for February delivery fell 0.61 percent, though weekly gains reached approximately 2.4 percent, supported by strong performance earlier in the week when prices hit record highs.

Dar Al-Sabaik noted that gold was strongly supported midweek by escalating geopolitical concerns and U.S. statements hinting at possible military action against Iran. These concerns later eased as the U.S. administration signaled a potential postponement of any military move, reducing the risk premium and demand for safe-haven assets.

The report also cited strong U.S. economic data as a factor putting downward pressure on gold. Industrial production exceeded expectations, the labor market showed resilience, unemployment claims declined, and the overall unemployment rate remained below Federal Reserve projections. These developments strengthened the U.S. dollar and raised Treasury yields, diminishing the appeal of non-yielding gold.

Dar Al-Sabaik stated that the market now expects the Federal Reserve to maintain interest rates at its next meeting, delaying large-scale monetary easing until mid-2026. This outlook reduced investor bets on a continuation of gold’s short-term upward momentum.

From a technical perspective, gold stabilized below $4,600 per ounce after hitting a low of nearly $4,537 on Friday and rebounding above the $4,550 support level. The report described a shift in momentum from bullish to neutral, with heightened volatility likely within the $4,550 to $4,640 range, reflecting sensitivity to political or economic developments.

Analysts remain divided on gold’s short-term outlook. Some anticipate a temporary correction due to profit-taking and rising yields, while long-term fundamentals, including high global debt and ongoing political uncertainty, continue to support prices.

Looking ahead, markets await key U.S. economic data, including inflation indicators, personal income and spending figures, GDP readings, and purchasing managers’ expectations, which could influence the future trajectory of gold prices.

Locally, the report noted that global precious metals trends were mirrored in the Kuwaiti market. The price of a gram of 24-karat gold reached approximately 45.420 Kuwaiti dinars (around $150), while 22-karat gold reached 41.630 dinars (around $137.30). Silver remained stable at roughly 965 dinars per kilogram (around $3,100), supported by global market momentum.