Gold prices plummet to lowest level in 5 weeks

KUWAIT: Gold price dropped to USD 1,207 per ounce, the lowest level since five weeks ago, affected by US employment reports for March, said Sabaek Al-Kuwait Company yesterday. The American reports contributed to boosting the US dollar against major European currencies and precious metals, where the gold lost USD 30 of its price, dropping from the highest level it reached last Thursday.

The gold dropped from 1,246 per ounce to USD 1,207. However, it remained the safe haven for investors and despite pressure, it settled on Friday at USD 1,223, thus ending Q1 2016 with a 16.6 percent rise. Sabaek said the US dollar rebound, buoyed by the American reports and bearish European currencies, may stem the Gold bullis

h trend in the coming days. But the report forecast showed that it would go up to USD 1,280 per ounce later this month.
Nevertheless, Sabaek speculated that it might cross the USD 1,200 level and reach USD 1,185, due to the bullish greenback, particularly in case the American central bank raised the interest. As to silver, the report said its price reached USD 14.80 per ounce adding that it averaged USD 15.08 in Q1 2016. The report however anticipated that it would jump to USD 16.

Platinum rose by USD 20 closing at USD 959. Palladium closed at USD 565 losing USD 14 as compared to the price early last week. Local gold retail markets were generally calm since started of the past week, affected with impact of the upward trend of the precious metal. The market witnessed some activity with customers buying 18-21 karat pieces. The past week was better than the previous ones, when the dollar was up but trades were very limited in the local market. – KUNA

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