KUWAIT CITY, Jan 20: Gold prices ended last week’s trading higher at $2,702 per ounce, marking a third consecutive week of gains, with a 1.25 percent increase from the previous closing price. This upward movement in gold prices comes amidst ongoing geopolitical tensions and economic challenges around the world, particularly with the inauguration of US President-elect Donald Trump. According to a report from the Kuwaiti company Dar Al-Sabayek, the political and economic uncertainties, especially those associated with the incoming US administration, have significantly impacted gold prices. There is growing expectation that President Trump’s policies will include stricter economic measures, such as imposing tariffs, which could intensify global trade tensions. This has prompted investors to seek gold as a safe haven.

The report also highlighted expectations of higher inflation resulting from these policies, which could further boost gold’s appeal as a hedge. Recent US economic data showed core inflation was lower than expected, which has raised the possibility of the US Federal Reserve cutting interest rates shortly, potentially increasing demand for gold. Additionally, the report noted that China’s economy is expected to grow by 5 percent in 2024, adding to the economic divergence at the global level. With important US economic data expected this week, such as initial unemployment claims and purchasing managers’ indices, market participants are closely monitoring developments that could influence economic expectations and interest rates. Looking ahead, Dar Al-Sabayek forecasts that gold prices could continue to rise in the coming months if economic instability persists, particularly with escalating trade conflicts and protectionist policies between the US and China.

Gold prices may exceed $2,800 per ounce and could reach $3,000 per ounce in the second half of the year, especially if inflationary pressures intensify. In the local market, 24-karat gold was priced at 26.89 dinars per gram (about $82), while 22-karat gold was priced at 24.65 dinars per gram (about $75). Silver prices remained stable at 340 dinars per kilogram (about $1,111). The report also clarified that a troy ounce, the unit of measurement used for precious metals, is equal to 31.103 grams.