(MENAFN- Kuwait News Agency (KUNA)) KUWAIT, Oct 5 (KUNA) -- Gold prices continued their upward trend, reaching new record levels of USD 3,886 per ounce, influenced by the US federal government shutdown and the continued failure to reach an agreement in Congress on government funding, said Kuwait's Dar Al-Sabayek in its weekly report.
The report noted that gold futures contracts rose by one percent, equivalent to USD 41, to reach USD 3,908 per ounce, achieving weekly gains of 2.6 percent and recording the 41st record close since the beginning of 2025.
Gold has continued its upward trend for the seventh consecutive week, rising approximately 48 percent since the beginning of the year, supported by strong demand for safe havens amid the US government shutdown crisis and growing expectations of interest rate cuts, it added.
The report also indicated that the US government shutdown delayed the release of important economic data, such as the September nonfarm payrolls report, prompting investors to rely on alternative indicators that showed a slowdown in economic activity.
There was a decline in employment in the US private sector. In contrast, the Purchasing Managers' Index for the services sector remained stable at 50 points, the dividing line between growth and contraction, said the report.
Furthermore, the report noted that gold-backed exchange-traded funds (ETFs) experienced record inflows in September, with the world's largest ETF recording daily inflows of 19 tons, thereby increasing its monthly holdings by 35 tons. This reflects the return of institutional interest in the yellow metal, despite total global holdings remaining below 2020 levels.
The positive momentum also extended to other precious metals, with silver surpassing USD 47 per ounce, achieving new highs in recent weeks.
It also noted that macroeconomic factors continue to support investors' preference for gold as a hedge, given the continued absence of official data due to the US government shutdown and the Federal Reserve's approach to a deeper monetary easing cycle.
Geopolitically, the report emphasized that financial uncertainty in Washington, rising international trade tensions, and the continued fragility of security situations in conflict zones contributed to raising the risk premium and supporting gold prices to remain close to record levels.
Locally, the report indicated that gold prices in the Kuwaiti market were affected by these developments, as the price of a gram of 24-karat gold reached about KD 38.365, while 22-karat gold recorded about KD 35.170, and silver achieved about KD 530 per kilogram. (end)
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