Gold shines in Middle East conflict as prices soar 3%

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KUWAIT CITY, Oct 15: Gold achieved a significant price jump of over 3 percent at the end of last week’s trading, reaching USD 1,933 per ounce amid escalating military tensions in the Middle East.

Gold recorded its best weekly performance since the beginning of this year, as demands increased as a safe haven amid the increasing conflict in the Middle East and the absence of any kind of calm currently, the Kuwaiti-based company Dar Al-Sabaek said in a report Sunday.

Gold futures for next December rose by 2.5 percent, or the equivalent of USD 5.58, to reach USD 1,942 an ounce, achieving their best weekly performance since last March, the report added.

Gold ended losses that extended more than two weeks due to the increase in geopolitical tensions, it explained.

This coincided with US economic data indicating that there was no need to raise interest rates in both short and medium terms, which led to a slowdown in US Treasury bond yields and thus an additional rise in gold prices, it stated.

It underscored that the prevailing trend among investors is gold amid the times of uncertainty that the global economy is experiencing, explaining that despite the rise in gold, there are still new buyers, especially with increasing fears that the conflict in the Middle East may extend to other regions.

Safe haven assets are remarkably popular, which provides Gold with the opportunity to reach USD 2,000 per ounce, it pointed out.

Regarding the local market, it mentioned that the price of a 24-carat gram gold was KD 19.35 (about USD 59), while the 22-carat gram was KD 17.5 (roughly USD 53), whereas the silver price was KD 271 (approximately USD 826) per kilogram. (KUNA)

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