Market

Gold prices fall to USD 1,751 per ounce – report

– Gold prices fell at the end of last week’s trading to USD 1,751 per ounce, amid expectations that US Federal Reserve (Central Bank) would continue to increase interest rate, the Kuwaiti Dar Al-Sabaek Company said on Sunday.

The company added in a report that US Federal Reserve officials’ statements regarding further increases of the interest rates, which have negatively affected gold, stopping its series of rises since the beginning of November.

The US interest rate increase could reach five to seven percent based on US economic reports which indicate that the US fight against inflation could lead to fluctuations in gold in both short and medium terms, according to the report.

San Francisco Federal Reserve Bank President Mary Daly affirmed that a temporary halt to raising interest rates is off the table, while Kansas City Federal Reserve Bank President Esther George said that policy makers should not stop raising interest rates anytime soon, which indicates US determination to continue this policy.

It also stated that the main factor of gold price depends on inflation rates and as it declines it would allow the US Federal Reserve to change the policy of raising interest rates, which will recover gold markets.

Regarding the local market, gold prices closed at KD 17.4 per gram (24) karat and KD 14.9 for (22) karats, while silver recorded KD 257 per kilogram.

Source: Kuwait News Agency

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