Gold prices jump more than 3% over Mideast tensions

KUWAIT: Gold prices recorded a price jump of over three percent at the end of last week’s trading, reaching $1,933 per ounce amid escalating military tensions in the Middle East.

Gold recorded its best weekly performance since the beginning of this year as demands increased for the precious metal as a safe haven amid the increasing conflict in the Middle East and the absence of any kind of calm, the Kuwaiti-based company Dar Al-Sabaek said in a report on Sunday.

Gold futures for December rose by 2.5 percent, or the equivalent of $5.58, to reach $1,942 an ounce, achieving their best weekly performance since last March, the report added. Gold extended gains ending more than two weeks of bearish trend due to the increase in geopolitical tensions, it explained. This coincided with US economic data indicating that there was no need to raise interest rates in both short and medium terms, which led to a slowdown in US Treasury bond yields and thus an additional rise in gold prices, it stated.

It underscored that the prevailing trend among investors in gold amid uncertainty that the global economy is experiencing. Despite the rise in gold prices, there are still new buyers, especially with increasing fears that the conflict in the Middle East may extend to other regions. Safe haven assets are remarkably popular, which provides gold with the opportunity to reach $2,000 per ounce, it pointed out. Regarding the local market, it mentioned that the price of a 24-carat gram gold increased to KD 19.35 (about $59), while the 22-carat gram was trading at KD 17.5 (roughly $53). The silver traded at KD 271 (approximately $826) per kilogram. – KUNA.