KUWAIT: Gold prices went up to $2,053 per ounce after the closing of last week’s exchange market, a historical price for gold in 2023. A report issued by the Kuwaiti company Dar Al-Sabaek said that last week witnessed significant jumps for gold as it approached the level of $2,072 per ounce for a short period before declining to $2,053 per ounce.

The pricing was supported by data received from the United States that indicated a decline in inflationary pressures and bets on an early reduction in interest rates by the US Federal Reserve (Central Bank). The report added that the rise in gold prices coincided with the decline of the US Dollar index against the basket of major currencies by 0.15 percent to close at 101.7 points and the decline in US personal consumption expenditure prices “unexpectedly” by 0.1 percent on a monthly basis (November 2023).

It was revealed that the market is preparing for the first cut in US interest rates by the end of the first quarter of 2024, explaining that “faster and more frequent cuts in interest” mean a further rise in gold during the coming period. The report indicated the futures prices of gold for delivery next February rose by 0.85 percent, reaching $2,069 per ounce, achieving weekly gains of 1.65 percent.

The report expects that gold prices will continue to rise during the first quarter of 2024 due to several factors, the most important of which is the start of a cycle of declining US interest rates. The slowdown in global economic growth, the weakness of the US dollar, and the continued rise in geopolitical risks, especially military operations in the Middle East and threats of stopping global maritime shipping lines in the Bab Al-Mandab Strait and the Arabian Sea Regarding the local market, the report stated that the prices of gold (24 Karat) reached KD 20.3 per gram, while 22 Karat gold reached KD 18.6 and silver closed at KD 284 per kilo. — KUNA