KUWAIT CITY, Nov 2:  Gold prices stabilized after a record-breaking surge, closing at USD 4,002 per ounce at the end of last week’s trading, as global markets awaited the outcome of the U.S. government shutdown and key decisions from major central banks, according to a report released Sunday by Kuwait’s Dar Al-Sabaik Company.

The report noted that the precious metal ended trading the day before yesterday with a slight decline of 0.48 percent (USD 19.40), recording a weekly loss of 3.4 percent. Despite the setback, gold maintained monthly gains of 3.2 percent during October — its third consecutive month of positive performance — bolstered by growing trade and geopolitical uncertainty.

Dar Al-Sabaik explained that the recent pullback followed news of a temporary trade agreement between the United States and China, which eased tensions that had previously supported prices. Improved investor risk appetite further reduced safe-haven demand for gold, while U.S. Federal Reserve officials struck a cautious tone on the possibility of additional interest rate cuts this year.

The report pointed out that the U.S. dollar rose to a three-month high, and Treasury yields remained elevated, making gold more expensive for foreign investors. Market expectations for a December interest rate cut also declined sharply — from 91.7 percent to 66.8 percent.

It added that U.S. President Donald Trump and Chinese President Xi Jinping agreed to a one-year truce during the Asia-Pacific Economic Cooperation (APEC) Summit, which included a reduction of U.S. tariffs on fentanyl to 10 percent in exchange for China’s commitment to lower rare earth production and resume purchases of U.S. soybeans. “However, doubts remain about the sustainability of the agreement,” the report cautioned.

Meanwhile, the U.S. government shutdown stretched into its fifth consecutive week without tangible progress in Senate negotiations, delaying the release of key economic data and fueling market anticipation. Investors are now closely watching the release of employment figures, the Purchasing Managers’ Index (PMI), and consumer confidence data this week, which are expected to offer vital clues on the direction of monetary policy.

Dar Al-Sabaik stated that the overall trend for gold remains positive, with many analysts viewing the recent dip as a healthy correction following sharp gains. Participants at the London Bullion Market Association (LBMA) Conference forecast that gold could test resistance near USD 5,000 per ounce by 2026, supported by sustained central bank demand.

Central banks purchased 220 tons of gold in the third quarter, a 28 percent increase from the previous quarter, with annual acquisitions projected to range between 750 and 900 tons. The report predicted that gold is likely to consolidate around USD 4,000 per ounce in the short term, awaiting new catalysts, while the long-term outlook remains bullish due to persistent geopolitical tensions, accommodative monetary policies, and robust official demand.

Reflecting global trends, the Kuwaiti gold market saw the price of 24-karat gold reach approximately 39.6 Kuwaiti dinars ($128.70) per gram, while 22-karat gold was priced at 36.3 dinars (USD 118) per gram. A kilogram of silver traded at 563 dinars ($1,830) amid cautious local trading influenced by international developments.