Gold posts weekly drop amid tariffs, policy concerns
KUWAIT: Gold prices closed last week lower at $3,336 per ounce, pressured by a series of economic and political developments, particularly US tariffs and expectations surrounding US monetary policy, according to a report issued by Kuwaiti firm Dar Al-Sabayek. The report said the yellow metal opened the week at $3,394 per ounce before slipping to a low of $3,330 on concerns over tariff measures, ending the week with a 3 percent decline - its weakest performance since late June.
Gold came under further pressure after the US producer price index posted its fastest rise in three years, prompting markets to reassess the likelihood of interest rate cuts. Higher bond yields and mixed economic data, however, helped limit losses and kept prices above key technical levels. The report noted that the imposition of customs duties on gold temporarily disrupted physical trade and widened the gap between spot and future prices to more than $100, before narrowing to $60 after US President Donald Trump announced gold's exemption from the tariffs.
The volatility, it added, prompted banks and financial institutions to adopt a more cautious approach in striking deals. Markets are now focused on the upcoming speech of US Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium this week, alongside key economic indicators including the purchasing managers' index, housing data, unemployment figures and home sales.
Dar Al-Sabayek said Wall Street analysts remain neutral on gold's near-term direction, though political or monetary surprises could trigger sharp price movements. It noted that 63 percent of retail investors expect gold to rise in the coming week. In the local market, the price of 24-karat gold stood at KD 32.875 per gram (around $107), while 22-karat gold was priced at KD 31.153 per gram (around $102). The price of silver reached KD 421 per kilogram (about $1,378), with trading marked by caution as investors await clearer global signals. — KUNA
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