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Gold prices surge, driven by escalating geopolitical tensions

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KUWAIT: Gold prices surged to unprecedented levels last week, bolstered by escalating geopolitical tensions, heightened US-China trade frictions, and a sharp decline in the US dollar, according to a report issued Sunday by Kuwait’s Dar Al-Sabayek Company. Spot gold prices reached an all-time high of $3,245.45 per ounce, marking a weekly gain of 6.9 percent. The report attributed the rally to increased global demand for safe-haven assets, driven by fears of a global economic slowdown and the weakening of the US currency.

Gold futures for June delivery also witnessed strong gains, closing at $3,244.6 per ounce, an increase of $67.1 or 2.1 percent in a single trading session. The report noted that the US dollar index fell significantly to 99.01 points — its lowest level since May 2022 — following the release of weaker-than-expected US economic data. This included a 0.4 percent monthly decline in the Producer Price Index (PPI) for March, marking its first contraction in 17 months.

The annual inflation rate, as measured by the PPI, also eased to 2.7 percent in March from 3.2 percent in February. Core inflation, which excludes volatile food and energy prices, remained stubbornly high at 3.3 percent, complicating the outlook for US monetary policy, the report stated. Consumer sentiment also deteriorated, with the University of Michigan’s consumer confidence index dropping from 57 points in March to 50.8 in April’s preliminary reading. The data reflects growing pessimism among US households regarding economic conditions and inflation expectations, which rose to 6.7 percent in the short term and 4.4 percent in the long term.

Meanwhile, trade tensions between the US and China reached new heights after Washington raised tariffs on Chinese imports to 145 percent. Beijing responded with retaliatory tariffs of 125 percent on US goods. The dispute now affects over $700 billion in bilateral trade, according to the report. This intensification of the trade war has further reinforced gold’s appeal as a safe-haven asset, helping it remain above the $3,200 mark despite the upward movement in real yields on US 10-year Treasury bonds, which rose to 2.307 percent — typically a bearish factor for gold.

Dar Al-Sabayek emphasized that gold’s resilience amid rising yields underscores the dominance of geopolitical and economic uncertainty over traditional market drivers such as interest rates. The report added that market sentiment this week will likely be shaped by key events, including corporate earnings on Wall Street, US retail sales and industrial production data, GDP figures from China, and inflation and employment statistics from the United Kingdom. Decisions from major central banks — the European Central Bank, Bank of Canada, and Bank of Korea — are also expected to influence markets.

Gold continues to attract strong investor interest as the preferred asset during periods of global instability. Ongoing tensions in the Middle East and Red Sea region, the protracted Russia-Ukraine conflict, and China’s military activity near Taiwan have all contributed to heightened demand for the precious metal. In the local market, the report stated that 24-karat gold was priced at KD 32.1 per gram (approximately $98), while 22-karat gold stood at KD 29.42 (around $90) per gram. Silver prices held steady at KD 370 per kilogram (about $1,209). The report also clarified that the troy ounce, commonly used in precious metals trading, is equivalent to 31.103 grams. — KUNA

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Kuwait moving to develop Durra

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KPC spending $2bn annually on strategic projects, mulls pipeline lease-leaseback deals

KUWAIT: Chief Executive Officer of Kuwait Petroleum Corp (KPC) Sheikh Nawaf Al-Saud Al-Sabah said on Tuesday that all necessary approvals have been obtained from the Kuwaiti government to develop the offshore Durra gas field despite a lingering controversy with neighboring Iran. He said preparations are underway to develop the vital project along with Saudi Arabia, which owns half of the resources in accordance with an agreement between the two Gulf nations.

Kuwait Gulf Oil Company, a KPC subsidiary operating in the Neutral Zone shared with Saudi Arabia, has made progress on the Durra gas field project in partnership with Saudi Aramco, completing initial engineering designs. Kuwait is also seeking to implement a program to drill 15 offshore oil exploration wells, part of a broader push to boost reserves and production capacity.

Addressing the annual meeting of senior oil officials, Sheikh Nawaf also said KPC is spending around KD 2 billion in capital investments every year to boost the production capacity of some strategic projects. “We are studying the possibility of leasing and re-leasing (oil) pipelines in the country,” Sheikh Nawaf told reporters. (See Page 8)

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CSC nominates 1,236 citizens for govt jobs

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KUWAIT: The Civil Service Commission (CSC) announced on Tuesday the nomination of a new batch of 1,236 citizens registered in the central employment system, urging them to report directly to their designated employers without needing to visit the commission. In a statement to Kuwait News Agency (KUNA), the CSC said the batch includes university and diploma holders, whether newly eligible for nomination or previously rejected, in line with the requirements of government agencies.

The commission also noted that registrants with secondary and intermediate certificates who are enrolled in qualifying courses will be nominated immediately upon successfully completing these programs, preparing them for appointment in relevant workplaces.

The CSC added that it is currently collecting data on the second phase of job needs from government agencies for the 2025–2026 fiscal year, ahead of presenting it to the Civil Service Council. New batches of nominations will be issued once the data are approved, in accordance with employment plans submitted by government agencies.

The commission emphasized that this approach implements the sovereign decision issued by His Highness the Amir, may God protect him, stipulating that nominations are linked to the actual needs of employers. — KUNA

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Schools reopen for new academic year with traffic measures in place

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KUWAIT: Public and special education schools welcomed students and teachers on Tuesday morning as the 2025/2026 academic year officially began. Classrooms and corridors came alive with a mix of enthusiasm and focus, following extensive preparations by the Ministry of Education to ensure a smooth start to the school year.

Students in various educational districts returned to their classes from the early hours, with schools fully equipped and staffed with qualified educators. The ministry also highlighted its attention to special education institutions, ensuring that students with diverse needs have access to a comprehensive and supportive learning environment. In an earlier statement, the Ministry of Education emphasized that the new academic year will include practical steps to develop curricula and enhance student activities, aiming to nurture an educated and aware generation capable of keeping pace with the changing times.

Meanwhile, Acting Undersecretary of the Ministry of Interior Major General Ali Al-Adwani conducted a field inspection on Tuesday to assess traffic conditions ahead of the new academic year, following directives from First Deputy Prime Minister and Minister of Interior Sheikh Fahad Yousef Saud Al-Sabah. Al-Adwani monitored traffic flow around schools, main roads, and expressways, stressing the importance of strict implementation of security and traffic measures to reduce congestion and ensure students reach their schools safely.

He called for a strong field presence of traffic commanders to supervise movement, address emergencies promptly, and enhance security at highways and intersections near school zones to prevent random parking and road obstructions. He urged parents and students to cooperate with traffic authorities and adhere to regulations, noting that public cooperation is key to achieving safe and smooth road conditions. Al-Adwani also expressed confidence in the ministry’s personnel, emphasizing that teamwork and dedication are essential for successfully achieving security and traffic objectives. — KUNA

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