Latest news with #DarAl-SabaekCompany
Arab Times
13 hours ago
- Business
- Arab Times
Safe-haven gold rockets to KD 32.89 in Kuwait
KUWAIT CITY, July 6: Global gold prices witnessed a significant increase at the close of the first week of July, with the price of an ounce reaching $3,337, driven by intertwined economic and political factors that pushed investors toward gold as a haven. According to a report issued on Sunday by Dar Al- Sabaek Company in Kuwait, precious metals prices reflected global movements in the local market. The price of 24-karat gold reached KD 32.890 (about $107), 22-karat gold was priced at KD 30.150 per gram (roughly $98), and the price of one kilogram of silver remained steady at KD 407 (around $1,329). For reference, the ounce (troy ounce), also called 'awqiya', is a unit of mass used in measuring precious metals. It equals 28.349 grams in general measurement, but 31.103 grams specifically when measuring precious metals. The report explained that growing concerns over the expanding U.S. fiscal deficit played a key role in boosting gold prices. This followed the U.S. House of Representatives' approval of a tax cut and spending expansion package proposed by President Donald Trump's administration. The package is expected to increase public debt by more than $3.4 trillion over the next decade, according to estimates by the Congressional Budget Office and the Joint Committee on Taxation. This development weakened the U.S. dollar's performance, prompting investors to increase gold holdings as protection against market volatility and the reduced purchasing power of the US dollar. The report also highlighted the rising trade tensions after President Trump announced plans to issue formal notifications to several countries about new tariffs, which could potentially reach 70 percent, set to take effect in early August. This move stirred investor fears of a further deterioration in the global trade environment. Without trade agreements by July 9, this escalation could trigger a wave of retaliatory tariffs from nearly 100 countries, according to U.S. Treasury Secretary statements. The uncertainty bolstered gold's appeal as a hedge during this turbulent period. In addition, the U.S. dollar index dropped to 97 points against major currencies, providing extra support to gold prices. Reduced liquidity in U.S. markets due to the Independence Day holiday helped ease selling pressure during the week's final sessions. However, positive U.S. labor market data slowed gold's rise. saw an addition of 147,000 jobs, and the unemployment rate fell to 4.1 percent, reducing expectations of an immediate interest rate cut by the Federal Reserve. The report also noted that 10-year U.S. Treasury yields climbed to 4.338 percent, exerting further pressure on gold prices in recent sessions. Despite the U.S. market holiday, gold remained sensitive to economic and political developments amid declining risk appetite and investor anticipation of upcoming monetary policy decisions from central banks worldwide. Markets now await the release of the minutes of the Federal Open Market Committee (FOMC) meeting, weekly U.S. jobless claims data, and monetary policy announcements from several major central banks worldwide (KUNA)
Arab Times
01-04-2025
- Business
- Arab Times
Gold hits new record high of $3,148 per ounce amid escalating geopolitical tensions
KUWAIT CITY, April 1: Gold prices reached a historic high on Tuesday, surpassing USD 3,148 per ounce for the first time, according to a senior official at Dar Al-Sabaek Company. The surge in prices comes as growing global geopolitical tensions and trade concerns have driven investor demand for gold as a safe haven. Al-Razihan, a spokesperson for Dar Al-Sabaek, told KUNA that the sharp rise in gold prices was primarily driven by US President Donald Trump's announcement regarding new tariffs, set to take effect on Wednesday. These tariffs will affect all countries except a select group of 10 to 15 nations. Additionally, Trump's threat to launch major military actions against Iran — leading Tehran to declare it might close the Strait of Hormuz—further escalated market uncertainties, boosting the appeal of gold. The tariffs, followed by additional duties on cars next Thursday, have heightened fears of a global trade war, increasing gold's attractiveness as a safe investment and hedge against inflation. Al-Razihan added that other factors, such as investor speculation on central bank interest rate cuts, continued purchases of gold by global central banks, and the growing demand for gold-backed exchange-traded funds (ETFs), have also contributed to the rise in prices. He further stated that gold prices are expected to continue their upward trajectory due to the ongoing economic uncertainty and trade disputes. Major global financial institutions, including Goldman Sachs, Bank of America, and UBS, have raised their gold price forecasts to USD 3,300 per ounce by the end of this year. Locally, the price of a gram of 24-karat gold reached approximately 31,450 Kuwaiti dinars today, reflecting the global surge in gold prices.
