KUWAIT CITY, Aug 13, (KUNA): The US Federal Reserve’s recent decision to slash interest rate on the USD and ongoing trade war between Washington and Beijing contributed to lifting gold prices in the past two days from USD 1,400 per ounce to USD 1,475 (OZ).
A report issued by the Kuwaiti Sabayek Company for precious metals, released on Tuesday, said the gold price, according to “most investors,” would exceed USD 1,500 (OZ). The yellow metal rate reached the highest level since 2013 when it has recently hit USD 1,475 (OZ), buoyed by a weak USD and investors’ inclination toward bourses and global stocks. The US Federal Reserve policy of trimming the interest rate will most certainly push the precious metal price higher than the USD 1,500 (OZ), according to the Sabayek Co. report.
Continuing commercial war between the US and China will lead to higher commodity prices, thus the USD value is forecast to drop, the report said, indicating that this situation would “serve the yellow metal and cause it to climb in the coming days.” Locally, sales in July were low with upcoming summer vacation and the eid, in addition to hike of global prices due to geopolitical factors in East Asia, as well as the global trade war. The report says the prices in the local market will remain low due to investors’ jitters and anticipations.