Gold prices exceeds $2,000 oz in last week's trading

KUWAIT: Gold prices exceeded the $2,000 per ounce threshold at the end of last week's trading, following expectations of the imminent end of monetary tightening measures by the US Federal Reserve (central bank), said economic source Sunday.

Gold futures for next December rose by 0.5 percent to reach $2003 per ounce, in conjunction with the decline in the index that measures the US dollar with other currencies at a rate of 0.55 percent at 103.3 points, the Kuwaiti (Dar-AlSabaek) company in a specialized report.

Expectations for US interest rates are to remain unchanged after the US (central bank) meeting scheduled early December, as analysts believe that the United States will not raise the interest rates ceiling during the current year, with the possibility of reducing it by April next year, the report added.

Gold prices will be affected positively by any US decision to lower interest rates in the coming months, in addition to geo-political factors, namely prospected rise of military tensions in the Middle East region, it explained. The People's Bank of China (central bank) fixed base interest rates on one-year loans at 3.45 percent, and for five years at 2.4 percent, which improved gold's performance during last week's trading, it added.

American economic indicators and reports will be issued during the week, which will have a direct impact on the trends of the yellow metal, especially indicating at the personal expenditure, and the purchasing managers' indexes, as well as expected speeches from several Federal Reserve officers, it added.

Regarding the local market, trades increased despite rise of the gold prices, as the rate of a 24-carat gram reached KD 19.9 (about USD 60). As for 22-carat gram, the rate stood at KD 18.25 (approx. $55), whereas the price of silver was KD 285 (about $869) per kilogram. An ounce, a measurement unit, is also called uqiyyah and is equal to 28.349 grams, while for precious metals, it is equal to 31.103 grams. - KUNA.