Kuwait Gold Prices Soar to $4,342 per Ounce Amid Geopolitical Uncertainty

Kuwait's gold prices surged last week, posting their best weekly performance since January and closing at $4,342 per ounce. This was the highest level since June 17, driven by weak US labor market data and ongoing geopolitical uncertainty in the Middle East.

A report from Dar Al-Sabaek noted that gold prices rose more than 7% last week, benefiting from a shift in market expectations regarding US monetary policy. The US nonfarm payrolls report showed that the economy lost 23,000 jobs in July, below market expectations of adding around 80,000 jobs.

The report explained that data for May and June underwent significant downward revisions, with previously reported employment figures cut by a total of about 103,000 jobs. This led to a sharp decline in expectations for US interest-rate hikes, causing the probability of raising rates at the September meeting to fall significantly.