KUWAIT CITY, Jan 25: Gold prices in Kuwait followed global trends, reaching record levels this week, with 24-carat gold rising to about KD 49.35 per gram (around 150 US dollars) and 22-carat gold reaching KD 45.24 (around 138 dollars). Silver prices also surged, trading at approximately KD 1,145 per kilogram (around 3,500 dollars). Globally, gold concluded an exceptional week, continuing to record new historical levels near 5,000 US dollars per ounce. This surge was driven by growing geopolitical and economic concerns, declining confidence in US assets, and a weaker dollar, boosting demand for precious metals as a safe haven.

A report issued on Sunday by Dar Al-Sabaek stated that gold closed the week at a record level near 4,987 dollars per ounce, achieving gains exceeding eight percent, which is the strongest since the COVID-19 crisis in 2020. During trading, it reached a historic peak near 4,990 dollars per ounce amid rising concerns over tensions between the United States and NATO regarding Greenland, ongoing uncertainty over US trade policy, and the independence of the Federal Reserve.

This strong performance was supported by the US dollar index falling to its lowest levels in several months, relatively stable Treasury yields, and growing expectations for continued accommodative monetary policy during 2026, despite no immediate rate cuts expected in the upcoming Federal Reserve meeting. Gold experienced notable fluctuations during the week, starting near 4,650 dollars per ounce at the beginning of the week before accelerating upward with Asian demand, then continuing as US liquidity returned, surpassing 4,800 and 4,900 dollars, and testing the psychological level of 5,000 dollars by the end of the week, signaling strong buying momentum and a continued short-term uptrend. Silver showed even stronger performance, with futures surpassing 100 dollars per ounce for the first time in history, achieving weekly gains exceeding 14 percent.

This was driven by strong investment momentum and notable inflows into metals with both investment and industrial appeal, outperforming gold in terms of year-to-date growth. Despite warnings about the potential impact of high prices on future industrial demand, continued dollar weakness and elevated global volatility kept silver in focus, with expectations of increased fluctuations in the coming period. Dar Al-Sabaek’s report indicated that technical forecasts suggest gold is poised to test the 5,000-dollar level again in the near term, with 4,900 dollars considered a major support level in case of temporary profit-taking. The overall outlook remains supportive of continued upward trends for both gold and silver as long as geopolitical uncertainty persists and the US dollar remains weak, placing precious metals at the forefront of defensive assets.

The last week of January is crucial for global markets, with anticipation of the Federal Reserve’s first decision of the year amid differing views within the Federal Open Market Committee regarding interest rates, along with announcements from major companies such as Apple, Meta, and Microsoft, which will provide important indicators of demand for artificial intelligence and investment in data centers. Markets are also awaiting important US economic data, including durable goods orders and the producer price index, as well as GDP data for the Eurozone and Canada, inflation data in Germany, Spain, and Australia, and purchasing managers’ indices in China, making this week decisive in determining the direction of the global economy and markets. The ounce, one of the units of mass measurement used in several systems, is equal to 28.349 grams, while as a unit for precious metals it equals 31.103 grams. (KUNA)