Kuwait gold shines despite headwinds

26/07/2026

KUWAIT CITY, July 26: Prices of precious metals in Kuwait continued to be influenced by global market developments, with the price of 24-karat gold reaching around KD 40.800 per gram (approximately $132), while 22-karat gold was priced at around KD 37.400 per gram (approximately $121).

The price of one kilogram of silver reached around KD 684 (approximately $2,222). According to a report by Kuwait’s Dar Al-Sabaek Company, local precious metal prices remain closely linked to international market movements, particularly fluctuations in gold prices driven by changes in monetary policies, energy prices, and geopolitical developments. Globally, gold prices ended last week’s trading at $4,054 per ounce, recording limited weekly gains after recovering from losses in the previous session. Markets remained cautious amid escalating geopolitical tensions in the Middle East and rising global energy prices. Dar Al-Sabaek’s report stated that gold continues to face pressure despite its recent gains, as expectations increase that interest rates will remain elevated for a longer period. This has reduced the appeal of gold as a non-yielding asset.

The report explained that gold experienced notable declines in recent months following the outbreak of the confrontation between the United States and Iran, as investors focused more on the inflationary impact of rising oil prices rather than seeking refuge in gold as a safe-haven asset. Concerns over inflation have reinforced expectations of continued tight monetary policies. Gold prices stabilized at the end of the week between $4,050 and $4,065 per ounce after declining by nearly 2 percent in the previous session, as investors balanced geopolitical risks, rising oil prices, and expectations regarding US monetary policy.

Markets are closely watching the US Federal Reserve meeting this week, with expectations that interest rates will remain unchanged. However, investors continue to anticipate a possible rate increase in the coming months if inflationary pressures persist. The report identified rising oil prices as the most influential factor affecting markets last week, driven by continued tensions in the Middle East and concerns over potential disruptions to energy supplies. It noted that sustained increases in energy prices raise production and transportation costs, which could lead (KUNA)