KUWAIT CITY, Oct 20: The local gold market in Kuwait has witnessed a remarkable surge in demand from both investors and retail buyers, even as prices continue to climb to historic levels.

According to official statistics for the second quarter of 2025, gold imports rose sharply by 119.3%, reaching a total value of KD 202.5 million, while imports of jewelry, ornaments, and parts made of precious metals increased by 9.1% to KD 110.3 million.

Gold price analyst Nasser Al-Attar stated that the volume of locally recycled gold has surged by more than 180% compared to the previous year, highlighting the growing preference for domestically processed products. He explained that Kuwaiti gold jewelry has become highly competitive with imported varieties due to several advantages — including lower production costs, absence of shipping or customs fees, and a higher weight-to-value ratio.

Commenting on global market trends, Al-Attar cautioned that persistently high prices have negatively impacted smaller emerging gold companies that lack a strong customer base, potentially pushing some out of the market. Despite this, he emphasized that local markets remain vibrant, driven by intense competition and diverse purchasing channels — from bank trading screens and corporate apps to delivery services and in-store sales.

“We have observed a noticeable rise in purchases as gold reached $3,780 per ounce, with some transactions recorded at $4,350, reflecting strong individual demand,” Al-Attar said.

He described the recent price spikes as an early warning signal for investors to hedge and secure positions amid ongoing volatility. The analyst attributed gold’s historic rally to a combination of factors — notably, large-scale central bank acquisitions, rising corporate and individual demand, and the influence of geopolitical tensions.

Looking ahead, Al-Attar forecast that these dynamics could push gold prices beyond $4,500 per ounce by 2026, while also expecting short-term corrections to around $3,970, driven by profit-taking and a temporary shift of capital toward silver.

Gold price analyst Iman Al-Abdul Ghafour also highlighted the distinct quality of Kuwaiti gold, noting that it stands out globally for its purity, clarity, and craftsmanship. Most local jewelry shops rely on Kuwaiti-made products, which are more cost-efficient and require less processing than imported items.

She observed that the correlation between rising prices and buying activity remains strong in Kuwait, with consumer confidence and market interest fueling higher demand. “The more attention a product receives, the stronger the trust from customers — and consequently, the higher the sales,” she said.

Al-Abdul Ghafour added that while demand for gold bullion and large bars has recently declined, buyers are now turning toward jewelry sets with lower manufacturing costs, reflecting a shift in consumer behavior amid price fluctuations.

In trading yesterday, gold prices continued their upward momentum. The price of 24-karat gold rose by 571 fils, up 1.39%, to KD 41.593 per gram, compared to KD 41.022 on Sunday. Similarly, 22-karat gold climbed to KD 38.162 per gram, up 524 fils from the previous day’s KD 37.63.

On the global stage, spot gold increased by 0.4% to $4,263.59 per ounce, recovering from a 1.8% drop last Friday — the steepest decline since mid-May. Despite the volatility, gold remains on track for its strongest weekly performance since April, having reached a record high of $4,378.69 per ounce earlier this week.