Kuwait Gold Prices Soar to $4,342 per Ounce Amid Weak Labor Data and Geopolitical Uncertainty
Kuwait gold prices ended last week's trading with a strong gain, reaching their highest level since June 17 at $4,342 per ounce. This represents a rise of over 7 percent from the previous week, driven by weak US labor market data and ongoing geopolitical uncertainty in the Middle East.
The key event that contributed to the surge was the release of the US nonfarm payrolls report, which showed a loss of 23,000 jobs in July. This was below market expectations, leading to a decline in expectations for US interest-rate hikes and a subsequent drop in the US dollar index by around 99 points.
The fall in the dollar increased gold's appeal as a non-yielding asset that benefits from lower interest rates and a weaker currency. Investment demand for gold also continued to provide support, with Chinese investment institutions increasing their positions in gold-backed assets and central banks continuing purchases.