Gold prices go wild as KD 30 per gram looms

12/02/2025

Gold prices go wild as KD 30 per gram looms

KUWAIT CITY, Feb 12: Experts predict that the rise in global gold prices will continue, with the price of an ounce expected to increase from $2,877 to $3,000. This will likely drive the price of a gram of 21-karat gold in Kuwait to KD 30 by March, after surpassing KD25 in recent sales. Experts attribute the price increase to various factors; including US President Donald Trump’s controversial statements regarding taxes, his threat to the head of the US Federal Reserve, central banks increasing gold reserves as a precaution against economic instability, and the ongoing Russia- Ukraine war. Gold trader Anwar Abdul Rab noted that gold prices have risen unexpectedly this year. Larger gold shops that hold significant quantities are seeing substantial profits, while smaller shops are struggling due to market stagnation. Meanwhile, gold purchases have increased by 20 percent over the past two months despite rising prices. Mohammed Zahid, another trader, explained that many consumers are buying gold cautiously, purchasing smaller pieces out of fear of further price hikes; while others are buying larger amounts either as an investment or for upcoming events like engagements or weddings.

Hussein Fouad, a gold shop official, emphasized the key factors driving the price rise, such as central banks, particularly China’s, buying vast amounts of gold. He also pointed out that ongoing geopolitical tensions, including the Palestinian-Israeli conflict and the Russia-Ukraine crisis, are exacerbating the situation; making it unlikely that gold prices will return to earlier levels. Gold jewelry expert Hamad Al- Hajri explained that the increase in gold prices began with inflation rates rising globally and the disruption of global trade during the COVID-19 pandemic. The onset of the Russia-Ukraine war, along with sanctions on Russian oil and central bank assets, further fueled the surge in prices. He anticipates that gold prices may peak by mid-year but could decline by around percent by year’s end. Currently, the Kuwaiti gold market is seeing cautious consumer activity, with many potential buyers hesitant due to high prices. Some are turning to used or broken gold to lower costs, as the workmanship on new gold pieces can add an additional KD 1 to KD 3 per gram, depending on quality.

By Najeh Bilal
Al-Seyassah/Arab Times Staff