24-karat gold in Kuwait hits KWD 36.270 as global prices surge.

KUWAIT CITY, Sept 21:  Gold continued its record-breaking surge, closing at $3,685 per ounce at the end of last week’s trading—marking the fifth consecutive week of gains, bolstered by the first U.S. interest rate cut this year and mounting expectations of further monetary easing before year-end.

In its weekly report issued Sunday, Dar Al-Sabayek Company noted that gold futures for December delivery rose by 0.74 percent, settling at $3,705 per ounce, while the spot price touched an all-time high of $3,707, before stabilizing within the $3,660–$3,690 range.

According to the report, the rally reflects a combination of monetary policy shifts and resilient physical demand, highlighting the U.S. Federal Reserve’s recent decision to cut interest rates by a quarter percentage point. The move, driven by a weakened labor market, has reshaped market expectations, with potential rate cuts in October and December becoming increasingly likely.

Dar Al-Sabayek explained that lower interest rates reduce the opportunity cost of holding gold, enhancing its appeal as a safe-haven asset amid inflationary pressures and global uncertainties.

Strong actual demand also played a key role in gold’s momentum. The report pointed to Indian gold purchases reaching a 10-month high, while Chinese imports from Switzerland tripled to 35 tons, signaling a robust shift in physical demand to Asia. Simultaneously, U.S. gold exports dropped sharply amid what the report described as “tariff confusion,” further redirecting supply flows eastward and reinforcing the demand base.

In addition to monetary and demand-driven factors, geopolitical tensions continued to lend support. The report cited ongoing conflicts in Ukraine and the Middle East, as well as uncertainty surrounding international trade negotiations, which contributed to a precautionary risk premium, though not considered the primary market driver.

Still, the report cautioned that the strong U.S. dollar, a rise in 10-year Treasury yields to 4.14 percent, and an increase in real yields to 1.76 percent have acted as modest headwinds to gold’s upward trajectory.

Looking ahead, the report highlighted that the upcoming week will be crucial, with the release of key U.S. economic indicators, including purchasing managers’ indices, durable goods orders, jobless claims, and the final GDP reading. Of particular importance will be the core PCE index, the Fed’s preferred inflation measure. A weak showing across these metrics could increase pressure on the U.S. economy and potentially push gold beyond the $3,710 level, with $3,750 per ounce in sight.

Market attention will also turn to speeches by Federal Reserve Chair Jerome Powell and other Fed officials, alongside monetary policy decisions expected in China, Switzerland, Sweden, and Mexico. Meanwhile, global tensions remain high as world leaders gather for the United Nations General Assembly in New York.

In terms of long-term projections, Dar Al-Sabayek stated that if the global financial easing cycle continues and central banks sustain gold purchases, the medium-term target of $4,000 per ounce remains firmly on the horizon.

Local market impact

The report also noted a significant impact on the local Kuwaiti market, where the price of 24-karat gold reached approximately KWD 36.270 (around USD 111), while 22-karat gold stood at KWD 33.250 (roughly USD 101). A kilogram of silver was recorded at KWD 467 (about USD 1,536).

For reference, the troy ounce, used for precious metals, equals 31.103 grams.

His Highness the Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah chaired a meeting of the Ministerial Committee at Bayan Palace on Thursday to follow up on the implementation status of agreements and memoranda of understanding signed between the governments of the State of Kuwait and the friendly People’s Republic of China.

KUWAIT CITY, Sept 18: His Highness the Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah chaired Thursday, at Bayan Palace, the 27th ministerial committee meeting to follow up on the implementation of agreements and memoranda of understanding signed between Kuwait and China. The meeting reviewed the latest progress in executing developmental projects included in the MoUs, especially cooperation in Mubarak Al-Kabeer Port, electricity systems, renewable energy, low-carbon recycling, housing, environmental infrastructure, free zones, and economic zones.

The meeting examined the outcomes of Chinese delegations’ visits this month, regarding cooperation between Kuwait and Chinese companies in environmental fields, afforestation, combating desertification, and ensuring effective collaboration to implement the agreed development initiatives efficiently and sustainably. His Highness directed committee members to ensure the strict implementation of signed agreements with major Chinese government companies, emphasizing adherence to strategic plans to achieve the intended results within the specified timeframes, ensuring proper execution of all projects. Assistant Foreign Minister for Asian Affairs, committee member and rapporteur Samih Jawhar Hayat, stated that the meeting discussed major development projects, reviewed upcoming Chinese delegations’ agendas, and highlighted that the Chinese state company will begin phases three and four of renewable energy projects, emphasizing Kuwait’s commitment to advancing joint initiatives and strengthening bilateral cooperation.

The meeting was attended by Head of the Prime Minister’s Office Abdulaziz Al-Dakheel, Minister of Public Works Noura Al-Mashaan, Minister of State for Municipality Affairs and Housing Abdullatif Al-Mishari, Minister of Electricity, Water and Renewable Energy and Minister of Finance and Acting Minister of State for Economic and Investment Affairs Sabeeh Al- Mukhaizem, Director General of the Direct Investment Promotion Authority Dr. Meshaal Jaber Al-Ahmad Al-Sabah, Head of Fatwa and Legislation Office Salah Al-Majid, Undersecretary of the Ministry of Defense Abdullah Al-Sabah, and Assistant Foreign Minister for Asian Affairs and Member and Rapporteur of the Ministerial Committee Samih Jawhar Hayat.(KUNA)

Kuwait Oil Company CEO Ahmad Al-Eidan delivers his speech

KUWAIT CITY, Sept 18:  Kuwait Oil Company (KOC) has officially begun commercial production at the Mitribah oil field in northwestern Kuwait, CEO Ahmad Al‑Eidan announced Thursday, marking a major milestone in the company’s strategic expansion.

Al‑Eidan, speaking at a ceremony in Ahmadi City under the patronage of Oil Minister Tareq Al‑Roumi, described the launch as more than just completing a project. He called it “a living testimony” to the determination, innovation, and cooperative spirit within KOC.

He said Mitribah now joins KOC’s productive assets, giving “a strong push” to the company’s strategic path. Reflecting on his own history with the field, Al‑Eidan recalled his early work in the 1990s as a geologist in KOC’s exploration group, witnessing its development through many years.

Al‑Eidan explained that the milestone comes at a pivotal moment for KOC, which recently undertook a major organizational restructuring designed to enhance efficiency, sharpen its vision, and boost momentum across all its sectors. A key outcome of that reorganisation is the formation of the “New Exploration Group,” aimed at accelerating the process from exploration to production—especially in complex or unconventional reservoirs.

He pointed out that Mitribah is the first major achievement under this new structure. Institutional support and a clear strategic vision, he said, helped reduce project timelines, mitigate risks, and strengthen Kuwait’s position in global oil production.

Al‑Eidan praised the work of specialized geologists, engineers, planners, operators, and technical support staff. He also acknowledged the role of partners and contractors, whose cooperation and commitment he said were essential to overcoming infrastructure challenges and deploying advanced technologies efficiently.

He added that this achievement is not the end but the start of a more ambitious journey. He called on all involved to maintain momentum, continue adopting the latest technical solutions, and foster a culture of innovation and excellence, united by a strong sense of responsibility and teamwork.

Commercial output from Mitribah officially began on June 15, 2025, after connecting several wells to KOC’s production facilities. The field, located in a previously undeveloped stretch in northwest Kuwait, covers more than 230 square kilometres and lies outside the area of fields already operated by the company. Light oil with commercial viability was first discovered there in 2009. One of the major technical challenges was managing hydrogen sulfide gas concentrations of up to 40 percent, which contributed to delays in production start‑up.

The CEO of Kuwait Oil Company presents commemorative gifts to the Minister of Oil.