KUWAIT: Gold prices soared last week, briefly touching $3,600 per ounce before closing at $3,587, as mounting economic pressures in the United States and rising geopolitical tensions fueled demand for the safe-haven asset. A weekly report by Kuwaiti company Dar Al-Sabayek on Sunday said the sharp increase came amid weak US labor market data, renewed concerns over the future of US monetary policy, and heightened global uncertainty.
The report noted that December futures climbed to $3,653 per ounce at the end of the week, recording a 4 percent gain — the strongest performance in more than three months. Falling real bond yields further boosted appetite for non-yielding assets such as gold, as investors sought protection against volatility in financial markets. According to the report, markets were rattled by US jobs data that surprised analysts and reshaped expectations for the Federal Reserve’s next steps. Signs of a slowing labor market, coupled with fears of a looming recession, are now weighing heavily on policymakers, who may be forced to act more aggressively than previously anticipated.
Some Fed members have already hinted at the need for urgent intervention, while observers believe an interest rate cut larger than a quarter percentage point is possible if the weak data trend persists. These developments come as geopolitical tensions intensify in several regions, further amplifying investor anxiety and strengthening gold’s appeal. Dar Al-Sabayek added that the Fed now faces the difficult task of balancing inflation targets with the need to preserve labor market stability, a scenario that continues to favor gold’s upward trajectory.
Markets are now awaiting key US inflation figures, consumer confidence indicators, and jobs reviews this week, which could fuel further volatility. “Gold remains positioned within a high range if expectations of monetary easing are confirmed,” the report said. Locally, Dar Al-Sabayek reported that the price of 24-karat gold reached KD 35.17 ($107) per gram, while 22-karat gold was priced at KD 32.24 ($98) per gram. The price of silver stood at KD 477 ($1,563) per kilogram. — KUNA
