Gold Drops For 2Nd Week, Closing At USD 2,631 Per Ounce

(MENAFN- Kuwait News Agency (KUNA)) KUWAIT, Dec 29 (KUNA) -- Gold prices closed at USD 2,631 per ounce at the end of last week's trading, down 0.85 percent (USD 22) compared to the previous week's close.
A report by Kuwait's Dar Al-Sabaek on Sunday attributed the decline to rising US Treasury yields, subdued holiday trading, and a 0.15 percent drop in the dollar index to 108 points, causing market volatility.
The report highlighted that gold prices were influenced by economic and geopolitical factors, including US political developments, as markets monitor the anticipated return of President-elect Donald Trump to office on January 20 and the potential impact of his economic policies on markets, especially considering the Federal Reserve's expected monetary strategy for 2025.
Despite the recent price drop, the ongoing Russia-Ukraine conflict and Middle East tensions have driven demand for gold as a safe haven.
The precious metal remains appealing amid inflation fears and geopolitical uncertainty, with experts predicting prices may surpass USD 3,000 per ounce if central banks continue purchasing gold at a rapid pace.
However, the strength of the US dollar, with its index above 108 points, poses a challenge by making gold more expensive for investors using other currencies.
Expectations of Federal Reserve rate cuts and declining US bond yields could enhance gold's appeal.
Locally, the report noted that 24-karat gold reached KD 26.16 per gram (about USD 80), while 22-karat gold was priced at KD 24 (USD 74) per gram, with silver stabilizing at KD 331 per kilogram (USD 1,074).
An ounce equals 28.349 grams in general measurement and 31.103 grams for precious metals. (end)
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