Gold prices dip as Kuwait awaits global market cues

KUWAIT CITY, Aug 2 : Prices of precious metals in Kuwait continue to be influenced by global market movements. According to a report issued by Kuwait’s Dar Al-Sabaek Company on Sunday, the price of one gram of 24-karat gold reached KD 40.710 (approximately $132), while 22-karat gold stood at around KD 37.315 (approximately $121). The price of one kilogram of silver reached about KD 678 (approximately $2,202). Local prices are expected to continue being affected by international gold trends, movements in the US dollar, and upcoming economic data during the current week. Internationally, gold prices ended last week’s trading lower after coming under strong selling pressure during the final trading sessions, declining by more than 1.5 percent to close at $4,043 per ounce, despite recording their first monthly gain since February. The report attributed the decline to the recovery of the US dollar and the rise in US Treasury yields.

Despite the weekly decline, gold ended July with an increase of nearly 0.5 percent, marking its first monthly gain since February. The report explained that pressure on gold increased as the US dollar recovered part of its losses, with the dollar index closing at 99.8 points after earlier recording its largest daily decline since January 2023. The yield on 10-year US Treasury bonds rose to around 4.75 percent, increasing the attractiveness of yield-generating assets and reducing demand for non-yielding gold. Despite the US Federal Reserve’s decision to keep interest rates unchanged during its latest meeting, markets are focused on the next steps in monetary policy. US economic data showed GDP growth slowing to 1.5 percent in the second quarter, while the core Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred measure of inflation, declined to 3.3 percent, temporarily reducing expectations of further interest rate increases. (KUNA)