KUWAIT: Gold prices experienced a notable drop at the close of last week’s trading, reflecting a broader trend of losses in global financial markets amidst escalating tensions in the trade war involving the United States, China, and the European Union. The growing concerns over a potential global economic recession further compounded market unease. According to a specialized report by Kuwaiti firm Dar Al-Sabayek, gold finished at $3,037 per ounce, marking a 3 percent decline, while June futures fell by 2.75 percent, or $86, closing at $3,035 per ounce. This marked the end of a four-week winning streak for the precious metal.

The report noted that this decline coincided with a 0.85 percent rise in the US dollar index against other major currencies. This inverse relationship between the US dollar and gold negatively impacted the latter’s price, as a stronger dollar diminishes gold’s appeal as a safe-haven investment. Furthermore, US Federal Reserve Chairman Jerome Powell’s comments on the new tariffs imposed by President Donald Trump fueled additional economic concerns, highlighting the potential for rising inflation and slowing economic growth in the near future.

China’s response, which included a 34 percent tariff on US imports, exacerbated concerns about global economic stability, increasing fears of further escalation in the trade war between the two largest economies in the world. This uncertainty prompted investors to increase their gold stockpiles in US COMEX warehouses, anticipating possible disruptions in gold shipments and global trade due to the tariffs.

On the geopolitical front, the report highlighted the ongoing tensions in the Middle East, particularly the nuclear standoff between Iran and Western nations. Additionally, the continued military conflict in Ukraine, including Russian strikes on vital Ukrainian infrastructure, has heightened global anxiety. These developments have contributed to market volatility and sparked fears of further military escalations that could undermine the global economy, potentially driving up gold prices as investors seek refuge in the precious metal.

Locally, Dar Al-Sabayek’s report indicated that the price of 24-karat gold stood at KD 30.48 (approximately $93), while 22-karat gold was priced at about KD 28 (approximately $86) per gram. Meanwhile, silver prices remained stable at 344 dinars per kilogram (approximately $1,120). The ounce, a unit of mass used in various measurement systems, is equivalent to 28.349 grams, or 31.103 grams when measuring precious metals. — KUNA