Middle East Conflict Boosts Gold Prices By 3%

The price of gold jumped over 3 percent last week to USD 1,933 per ounce amid escalating Middle Eastern military tensions.

In a report published Sunday, Kuwaiti-based firm Dar Al-Sabaek said gold's weekly performance was the best since the beginning of the year due to the increasing conflict in the Middle East.

According to the report, gold futures for next December rose 2.5 percent, or USD 5.58, to USD 1,942 an ounce, their best weekly performance since last March.

The increase in geopolitical tensions caused gold to end losses that lasted more than two weeks.

Consequently, US economic data indicated that no interest rate increases were needed in the short and medium term, which led to a slowdown in US Treasury bond yields and thus an additional rise in gold prices.

It highlights that the prevailing trend among investors is gold amid times of uncertainty that the global economy is experiencing, explaining that despite the rise in gold, there are still new buyers, especially with increasing fears that the conflict in the Middle East may extend to other regions.

According to its report, safe haven assets are remarkably popular, which provides gold with the possibility of reaching USD 2,000 per ounce.

In the local market, a 24-carat gram of gold was priced at KD 19.35 (about USD 59), while a 22-carat gram was priced at KD 17.5 (roughly USD 53), and the price of silver was KD 271 (roughly USD 826) per kilogram.

 

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