(MENAFN- Kuwait News Agency (KUNA)) KUWAIT, Aug 24 (KUNA) -- Gold prices rose sharply last week, closing at USD 3,371 per ounce, after touching a daily high of USD 3,378, supported by growing expectations of imminent US interest rate cuts and renewed geopolitical tensions.
Kuwait-based firm Dar Al-Sabaek said in its weekly report on Sunday that gold's rally was driven by a weaker US dollar which fell more than one percent against major currencies, and a drop in 10 year treasury yield to 4.261 percent.
Federal Reserve Chairman Jerome Powell, speaking Friday at the Federal Reserve Chairman Jerome Powell, speaking Friday at the Jackson Hole symposium, highlighted rising downside risks to the labor market despite persistent inflationary pressures, signaling a potential policy shift.
Markets responded by pricing a nearly 90 percent chance of a rate cut in September, with one or two more expected before year's end.
Dar Al-Sabaek noted that Powell's remarks revived investor interest to seek a safe asset, particularly gold, as the war in Ukraine escalates, seasonal summer stagnation in other assets also boosted flows into the precious metal.
The report added that silver outperformed, ending the week at its highest level since September 2011, buoyed by strong industrial demand and expectations of a weaker dollar.
It said gold has remained in a trading range between USD 3,300 and USD 3,500 per ounce since April, unable to break its previous record high.
Analysts remain divided, the report said, with cautious optimism about gold's near-term uptrend balanced by concerns over how flexible the Fed will be in responding to upcoming inflation data.
Dar Al-Sabaek pointed out that US personal consumption spending figures and unemployment data due in early September will be key indicators of monetary policy direction, should the data confirm labor market weakness and slowing inflation, further rate cuts could follow, providing additional support for gold.
On the regional level, it said 24-carat gold reached KD 33.170 per gram, 22-carat gold stood at KD 30.400, while silver closed at KD 426 per kilogram. (end)
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