KUWAIT CITY, Aug 10: Gold prices in Kuwait saw a notable increase last week, with the price of 24-karat gold rising to KD 33.320 per gram (around $108), and 22-karat gold reaching KD 30.544 per gram (about $100). The price of silver also climbed, with one kilogram selling for KD 421 (approximately $1,377). According to a report issued on Sunday by the Kuwaiti company Dar Al-Sabaik, the rise in domestic gold prices mirrors global trends, with international spot prices closing at $3,398 per ounce, marking the highest level in two weeks amid the recent U.S. decisions on customs tariffs. The report highlighted that a surprise decision by U.S. Customs and Border Protection to classify 1 kg and 100-ounce gold bars under a tariff category has raised concerns about new regulatory pressures on gold trade.
Although the White House has attempted to downplay the move, market sentiment shifted strongly in favor of gold as a safe-haven asset, especially amid rising trade tensions between the U.S. and Europe, notably Switzerland, which is a global center for gold refining and export. In addition to geopolitical concerns, weak U.S. economic data has reinforced expectations of an imminent interest rate cut by the Federal Reserve. With unemployment benefit claims reaching their highest level since November 2021 and a slowdown in the services sector, markets are now pricing in a 92 percent chance of a rate cut at the Federal Reserve’s upcoming meeting.
Despite a rise in the 10-year U.S. Treasury yield to 4.285 percent and a slight improvement in the dollar index, investor demand for gold remains strong amid uncertainty over the future of U.S. monetary policy. The Dar Al-Sabaik report noted that the classification of gold as a tariffed good sends a political message to the European Union and signals a U.S. strategy aimed at reducing dependence on foreign financial centers, even allied ones. While tensions have yet to escalate into direct conflict, the situation has prompted investors to increase their gold holdings. Looking ahead, the report indicated that market attention will turn to upcoming U.S. data releases, including the consumer price index, retail sales, and consumer confidence index, as well as statements from Federal Reserve officials. Any negative or mixed signals could help keep gold at current levels or drive prices even higher. (KUNA)
