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Gold retains high gains in new year – expert

Gold held its gains for the second consecutive week of the new year, as its prices reached the level of USD 1,816 per ounce on the New York Stock Exchange (New York), supported by the decline of the USD and long-term US bonds, said an expert of precious metals.

In a statement to KUNA Monday, CEO of Kuwait Sabayik Company Rajab Hamed said that gold prices recorded an increase in their levels during last week’s trading, as they reached their highest levels at USD 1,831 per ounce, affected by investors’ strong demand for gold.

He also pointed to the relationship that links gold with the global inflation rate, as investors buy gold during periods of inflation to fight it and maintain the levels of the yellow metal as a commodity of safe-havens.

Moreover, he stated that the factors that contributed to the rise of gold at the beginning of the new year were also the emergence of a buying wave by central banks for for portfolios’ growing demands for investment in the metal.

Locally, Hamed pointed to the recovery of gold during the last period, where the price of a gram of 24 carats reached KD 17,800 (about USD 59,000).

Source: Kuwait News Agency

ANE