Gold Prices Hit An All-time High Due To Mideast Tensions

Gold prices logged new highs at USD 2,390 per ounce on Friday stimulated by geopolitical tensions in the Middle East. A report issued by Dar Al- Sabaek on Sunday indicated that investors perceive gold as a safe refuge in times of uncertainty, and lack of visibility. Gold futures remained steady at USD 2,431 an ounce, a testament to the strength of demand as investors and central banks all around the globe look to increase gold purchases up until next June. Last week, the US dollar index persisted at 106.1 points, as gold futures reached USD 2,433 per ounce. The US economy’s positive outcomes should have sent gold prices hurtling, explained the report, but due to the current geopolitical climate gold prices endured.

Indices of retail sales and purchasing managers performed well, prompting the US Federal Reserve (the central bank) to keep interest rates between 5.25 and 5.5 percent to counter continuous inflation. Analysts are awaiting personal consumption expenditure data next Friday, which will give insight into inflation rates in the upcoming period. The appeal of gold is as a safe investment and is speculated to remain steady during short and medium-length terms in this state of uncertainty. In local markets, 24-karat gold reached KD 23.89 per gram (approx. USD 73), 22-karat gold KD 21.09 (approx. USD 67), while the price of silver closed at KD 355 per kilogram (approx. USD 1,008).

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