Price dip sparks gold rush in Kuwait

03/02/2026

KUWAIT CITY, Feb 3: Gold traders confirmed that Kuwaitis seized the opportunity presented by the significant drop in gold prices over the past two days, filling their coffers with the precious metal after a three-day decline. They revealed to the newspaper that Kuwaiti purchases accounted for 70 percent of gold purchases, compared to 30 percent for sales and liquidations.

This is considered a sound economic strategy given the fluctuations in the global economy, not to mention the geopolitical challenges that the region is facing and the escalating tensions between the United States and Iran. They agreed that the local gold market witnessed a surge in Kuwaiti gold purchases, citing several factors behind the recent sharp decline in the price of the precious metal, which reached around 12 percent two days before resuming a slight, albeit fluctuating, upward movement

Among these factors was US President Donald Trump’s nomination of Kevin Warsh to head the Federal Reserve once the current chairman’s term ends. Bader Al-Arbash, an official at Bader Al- Arbash & Sons Jewelry Company, stated that the Kuwaiti gold market is currently experiencing a constant influx of gold buyers. He attributed the high demand in January to the price surge expected in the second half of the month, when gold proved to be the safest investment option while still providing satisfactory long-term returns.

He explained the decline in gold prices over the past three days as a market correction resulting from profit-taking in trading and portfolio markets, in addition to several technical factors related to the stock and bond markets. He believes that gold prices will stabilize and not experience sharp declines, with the price per ounce fluctuating between $4,600 and U$4,800 in the near future. He emphasized that the losers in the current 12 percent drop are speculators, not those who hold gold for investment or treasury purposes. He anticipates a return to the price surge seen in late January if there is further military escalation in the region, potentially pushing the price per ounce to around $6,000. He advised local consumers to purchase gold as a reserve, not for quick resale (speculation), whenever prices rise.

Fawaz Al-Duaij, CEO of Al-Duaij Jewelry, stated that the local gold market is currently experiencing tremendous activity, with buying significantly exceeding selling. He anticipates that gold prices will remain at their current level without sharp declines or exaggerated increases.

However, he added that if the political conflict in the region intensifies, geopolitical tensions escalate, and Iran is subjected to a military strike, the price of an ounce could potentially rise to more than $6,000. He explained that the current unavailability of gold coins in the market is due to a general shortage of gold resulting from the massive surge in demand since the beginning of this year, following the dramatic global price fluctuations. Mohammed Mansour, manager of Mansour Al-Sarheed Gold Shops and a jewelry expert, stated that gold prices have witnessed a significant decline, and he anticipates further drops in the coming days.

He pointed out that despite the price decrease, there is still strong consumer demand. He dismissed any link between rising gold prices and the potential US strike on Iran, arguing that gold prices fluctuate due to international market activity, not military conflicts.

Mohammad Hatab Adel Al-Abdullah, Marketing Director of Dar Al-Sabaik Company, said the buying volume in the local market reached 70 percent, with sales accounting for around 30 percent. He added that buying activity continued despite the global decline in gold prices by about 12 percent. He pointed out that one of the most important factors contributing to the global drop in gold prices was the decline in financial and technology stocks on Wall Street, which strongly encouraged traders to compensate for these losses by selling gold to generate liquidity. He also mentioned profit-taking and Trump’s statements regarding the appointment of Warsh in the coming period.

He indicated that the Federal Reserve’s decision to hold interest rates steady at the end of last week was a contributing factor to the decline in gold prices, but this factor had a slight impact, especially since everyone was anticipating the interest rate decision. Meanwhile, gold continued its decline Monday, affected by the rising dollar, as investors awaited the approach of Warsh regarding interest rate cuts. Gold fell 9.3 percent in spot trading before recovering to close down about 4.53 percent at $4,645 an ounce, while US gold futures for April delivery fell 4.8 percent to $4,516.70 an ounce. Gold hit an all-time high of $5,594.82 last Thursday. Silver pared its losses in spot trading, falling 0.11 percent to $78.62, after plunging more than 15 percent at the start of trading. It also reached an all-time high of $121.64 on Thursday, according to Reuters.

By Najeh Bilal Al-Seyassah/Arab Times Staff