KUWAIT CITY, Nov 24: Gold prices surged by 5 percent at the close of last week's trading compared to the previous week, marking their largest weekly gain since March 2023. The yellow metal recorded a price of $2,715 per ounce as heightened geopolitical tensions in Europe increased its appeal as a safe haven.

According to a report by Kuwait’s Dar Al-Sabaek Company on Sunday, this increase pushed gold futures for December delivery to settle at $2,718 per ounce, breaking a three-week losing streak.

The report highlighted that this rise occurred despite pressures from an increase in the US Dollar Index, which measures the dollar's performance against a basket of major currencies. The index climbed 0.55 percent to reach 177.55 points, having surpassed the 108-point threshold during trading.

The report also cited data from the University of Michigan indicating a decline in US consumer inflation expectations for 2024 to 2.6 percent, the lowest level since December 2020. This trend has bolstered gold’s attractiveness as an investment.

Gold prices climbed for the fifth consecutive session, reaching $2,715 per ounce during Friday's trading. This surge was attributed to escalating geopolitical concerns, particularly following Ukraine's launch of a missile equipped with Western technology against Russia. In response, Moscow deployed its first intercontinental ballistic missile on Ukrainian territory.

The report noted that expectations of a potential easing of US Federal Reserve monetary policy have further fueled demand for gold. This comes after an unexpected drop in US unemployment claims.

Statements by Patrick Harker, President of the Federal Reserve Bank of Chicago, hinted at the possibility of gradually lowering interest rates as inflation continues to decline toward the central bank’s target. This led to a two-basis-point drop in the yield on US 10-year Treasury bonds, further supporting the rise in gold prices.

The report emphasized that ongoing geopolitical tensions between Russia and Ukraine continue to drive demand for gold as a safe haven, particularly amid fears of an escalation in the conflict. It anticipated that upcoming US economic data, including the minutes of the Federal Reserve meeting, would have a direct impact on gold prices. Most analysts expect the yellow metal to maintain its upward trend in the near term.

In the local Kuwaiti market, the report stated that the price of 24-karat gold reached 27 Kuwaiti dinars per gram (approximately $89), while 22-karat gold was priced at about 24.750 dinars per gram. Silver prices remained stable at 349 dinars per kilogram (about $1,151).

It is worth noting that the ounce, a unit of mass measurement, is used in various measurement systems. For precious metals, an ounce equals 31.103 grams, though in general measurements, it equals 28.349 grams.