Kuwaiti Dar-Alsbaek: Gold prices at USD 2029 per ounce last week

KUWAIT, Jan 21 (KUNA) -- Gold prices closed high at USD 2029 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 on Sunday that the prices of gold futures contracts rose last Friday in the midst of ongoing military tensions in the Middle East, in conjunction with expert analysts' expectations that the United States' Federal Reserve will begin reducing interest rates.
The report explained that the reduction in US interest rates comes with its publication of economic data predicting a decline in inflation in the United States which was revealed by data from University of Michigan. The decline in inflation is predicted to reach 2.9 percent by the end of January, in comparison to 3.1 percent last December. Furthermore, it is worthy to note the decline in inflation had had the lowest reading since December 2020. Moreover, the report went on to explain an increasing interest in gold as a safe haven asset against rising tensions and risks, first in Gaza, and second in the possible suspension of Bab Al-Mandab Strait to commercial and international navigation.
It also mentioned the prices of futures contracts for the yellow metal for a February 2024 delivery rose to 0.4 percent which equates to USD 7.7, whereas a decrease in the index that measures the performance of the American currency against other major currencies by 0.2 percent at 103.33 points.
In regards to local markets, the report stated that the price of a gram of 24 karat was KD 20.26 (USD 61.7), 22 karat was KD 18.57 (USD 56.6), while silver closed at KD 268 (USD 817) per kilogram.
An ounce is one of the units' measurements of mass, which is equal to 28.349 grams, while a troy ounce of gold equals 31.103 grams. (end) smr.hth.za.