KUWAIT: Gold prices closed high at $2,049 per ounce at the end of last week’s trading following the surge of geopolitical risks in the Red Sea region. A report by Dar-Alsbaek said that gold prices rose to $2,062 per ounce before closing at $2,049, a clear indication of the concerns regarding the suspension of international navigation in the Red Sea and the Strait of Bab Al-Mandab.

It added that investors were currently looking to secure their financial positions by taking fewer risks in the stock and investment markets and investing more in precious metals, stressing that the demand for gold increased after US and British warplanes and ships launched dozens of air strikes in Yemen last Friday.

It explained that the impact on the gold market also benefited from a possible decision to decrease interest rates by the US Federal Reserve as early as March as well as expectations of three more cuts this year. In the local market, it was reported that the price of a gram of 24 caliber gold was at KD 20.4 (about $62), while the 22 caliber reached KD 18.7 (around $57), while silver closed at KD 274 (around $835) per kilogram.

Dollar stabilizes

In another development, the exchange rate of US Dollar stabilized on Monday against the Kuwaiti Dinar at KD 0.307, as did the Euro at 0.336 percent compared to yesterday’s rates, said Central Bank of Kuwait (CBK). CBK indicated in its daily bulletin that the Pound Sterling stabilized at KD 0.391 and the Swiss Franc at KD 0.360, while the Japanese Yen remained at KD 0.002. — KUNA