KUWAIT: Gold prices closed last week at a new record high of $2,578 per ounce, while futures contracts increased by 1.15 percent. A specialized report issued by the Kuwaiti company (Dar Al-Sabayek) said that this jump led to weekly gains of 3.4 percent, ending a series of losses that lasted for two consecutive weeks. The report stated that this rise came as a result of the US dollar index falling by 0.3 percent to reach 101 points against other major currencies, in addition to the decline in US Treasury bond yields amid strong expectations of a significant interest rate cut by the US Federal Reserve, which enhanced the attractiveness of gold as a safe haven for investors against market risks.

The report indicated that consumer inflation expectations in the United States declined to 2.7 percent for the current month of September—the lowest reading since December 2020—increasing the possibility of the US Federal Reserve cutting interest rates by 50 basis points. The report stated that the European Central Bank cut interest rates by 25 basis points last week, reflecting confidence in the decline in European inflation.

These moves, along with similar monetary policies from other central banks, supported gold prices globally last week. In light of these unstable global economic conditions, gold prices are expected to continue to achieve further gains while investors closely monitor the decisions of the US Federal Reserve and their impact on the markets. — KUNA