Kuwait Gold Prices Soar to $4,342 Amid Fed Hike Uncertainty
Gold prices in Kuwait surged last week, closing at $4,342 per ounce for their highest level since June 17. The rise was fueled by weak US labor market data and ongoing geopolitical uncertainty in the Middle East.
A report from Dar Al-Sabaek explained that a series of economic indicators pointed to a slowdown in the US labor market. This led to expectations that the Federal Reserve may put off further monetary tightening measures, causing a shift in market sentiment.
The report highlighted the release of the US nonfarm payrolls report, which showed the economy lost 23,000 jobs in July, below forecasts calling for around 80,000 new jobs. This downward revision also affected previously reported employment figures, confirming a faster-than-expected slowdown in the labor market.
As a result, expectations for US interest-rate hikes declined sharply, and markets leaned towards keeping interest rates unchanged. The probability of the Federal Reserve raising rates at its September meeting fell significantly.