KUWAIT CITY, Dec 28: Gold prices in Kuwait surged to record levels last week, with 24-karat gold reaching KD 44.30 (around $135) per gram and 22-karat gold at KD 40.61 (around $124) per gram, while silver hit KD 875 per kilogram (around $2,868). The increase was driven by rising global prices and currency market fluctuations, according to a report by Dar Al-Sabaek. Globally, gold prices climbed to $4,550 per ounce before closing at $4,531, as investors sought safe-haven assets amid escalating geopolitical tensions and growing expectations of U.S. interest rate cuts.

A specialized report issued on Sunday by Dar Al-Sabaek explained that investors are closely monitoring the U.S. ban on Venezuelan oil shipments and the ongoing Russia-Ukraine conflict, which has heightened global market anxiety. Markets are anticipating two potential U.S. interest rate cuts of 0.25 percent each next year, driven by declining inflation and relative improvements in certain labor market indicators, despite divisions among Federal Reserve officials over the future direction of monetary policy. Gold has surged more than 70 percent since the beginning of the year, marking its largest annual increase since 1979, supported by strong purchases from central banks and continued inflows into exchange-traded funds (ETFs). Silver also performed impressively, gaining over 170 percent after recovering from earlier volatility caused by tariffs and trade policies.

Industrial demand, particularly from the solar energy sector, along with active investment demand, has helped sustain the momentum. Recent surveys show that 57 percent of individual investors expect silver prices to surpass $100 per ounce in 2026, with experts noting that further gains are possible, though natural price corrections may occur following rapid increases. Some major banks and institutions have adopted a cautious approach as prices near historic highs, but overall market momentum is expected to continue. Analysts project a balanced outlook, with some predicting temporary stabilization or limited decline midyear before the upward trend resumes.

Demand driven by technological infrastructure, artificial intelligence, and clean energy is expected to remain a key factor supporting precious metals. At the same time, some analysts caution that the current commodity market boom may be followed by a short-term contraction before another upward phase. From a technical perspective, gold and silver maintain a strong upward trajectory, with support levels providing potential pivot points during any price corrections. These levels reflect investors’ continued reliance on precious metals for hedging and risk diversification amid global uncertainty. Dar Al-Sabaek clarified that an ounce, used in precious metals trading, equals 31.103 grams, while a standard ounce of mass equals 28.349 grams. (KUNA)