Gold Closes At USD 2,622 Per Ounce

12/22/2024 5:07:07 AM

(MENAFN- Kuwait News Agency (KUNA)) KUWAIT, Dec 22 (KUNA) -- Gold prices closed at USD 2,622 per ounce by last week's trading, with weekly losses of 1.1 percent recorded amid expectations of tightening monetary policy from the US federal Reserve (the central bank) for next year.
According to a report issued Sunday by the Kuwaiti company Dar Al-Sabaek, gold futures contracts for February 2025 delivery, rose by 1.4 percent, equivalent to USD 37, to reach USD 2,645 per ounce.
Despite this slight increase at the end of the week, gold recorded weekly losses of 1.1 percent due to expectations of a tighter monetary policy from the US Federal Reserve in 2025.
One of the factors that supported gold prices was the decline in the dollar index by 0.7 percent, which made gold more attractive to investors.
Inflation in the US provided additional support to gold, personal consumption expenses' price index rose by 0.1 percent in November, while annual inflation reached 2.4 percent, which put pressure on the dollar and supported gold prices.
However, the report showed that the market is still under pressure due to the Federal Reserve's directions, as their quarterly report indicates the possibility of cutting interest rates by 0.5 percent during 2025, which may diminish the appeal of gold as a non-yielding asset.
US Treasury bond yields continued to rise, which strengthened the dollar and weighed on gold prices, indicating that higher yields make bonds more appealing compared to gold, which leads to a decline in gold demand.
The Dar Al-Sabaek report saw that gold might benefit short term from the economic tensions in the US, and the cautious monetary policy approach may maintain the stability of gold prices or lead to greater price fluctuations in the coming period.
In the local market, it reported that the prices of 24-karat gold reached KWD 26.17 per gram (about USD 80), and 22-karat gold recorded about KWD 24 (about USD 74) per gram, while silver prices stabilized at KWD 332 per kilogram (about USD 1,078). (end)
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