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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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IICO launches program in cooperation with PAMA

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KUWAIT: The International Islamic Charitable Organization (IICO) has launched its annual summer training program in cooperation with the Public Authority for Minors Affairs (PAMA), under which 20 students sponsored by the authority will be received during July and August. Director of the Volunteer Work Department at IICO, Khaled Al-Shuaib, said in a statement to KUNA that the initiative aims to introduce the participating students to the principles of charitable work, while enhancing their practical capabilities and preparing them to play a future role in volunteerism and humanitarian efforts.

Al-Shuaib noted that the program reflects ongoing cooperation between IICO and PAMA in executing charitable projects that support marginalized groups and improve their quality of life, both locally and internationally. Among these initiatives, he said, is a partnership agreement to implement programs that support people with disabilities, and launch joint projects in areas such as social care and education.

He explained that the summer training is designed to instill a sense of social responsibility in youth by nurturing their talents and equipping them with vital skills in communication, teamwork and volunteer service. The initiative also falls in line with IICO’s strategic vision to strengthen the volunteer capacities of future generations and promote a culture of giving and national belonging.

Al-Shuaib pointed out that IICO attaches great importance to volunteerism through its network of volunteer teams. He said more than 731 volunteers participated in 40 teams last year, serving over 25,000 beneficiaries across Kuwait. He added that the IICO has previously implemented several charitable projects in cooperation with PAMA, including a recent initiative in the Republic of Tajikistan. The organization established a primary and preparatory school, a fully equipped medical center, an artesian water well with a storage tank and operating system, and a water distribution network. — KUNA

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Kuwait and UK bolster ties

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Crown Prince, PM meet UK FM • Three agreements signed • Close cooperation hailed

KUWAIT: HH the Crown Prince Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah received at Seif Palace on Sunday UK Secretary of State for Foreign and Commonwealth Affairs David Lammy during his official visit to Kuwait. The meeting was attended by Kuwaiti Minister of Foreign Affairs Abdullah Al-Yahya, Assistant Minister of Foreign Affairs for European Affairs Sadeq Marafi, Kuwaiti Ambassador to the UK Bader Al-Munaikh and UK Ambassador to Kuwait Belinda Lewis.

HH the Prime Minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah also received Lammy. During the meeting, both sides touched on enhancing bilateral ties between the two countries. The meeting was attended by Head of the Prime Minister’s Office Abdulaziz Al-Dakheel, Marafi, Al-Munaikh and Lewis.

On Saturday, Al-Yahya received Lammy and his accompanying delegation. The visit comes to bolster bilateral relations between the two countries and support ways to boost cooperation. The latest round of strategic talks between Kuwait and Britain produced a trio of agreements aiming to propel bilateral relations to greater levels, the foreign ministry said on Sunday, praising the longevity and proximity of these ties.

The talks, presided over by Al-Yahya and Lammy, come some 126 years after diplomatic relations began in earnest, while trade ties date back more than 250 years, according to a foreign ministry statement. The history of relations between Kuwait and London is dotted with instances of camaraderie and cultural exchange, in addition to productive cooperation across fields ranging from healthcare to education, the statement cited the Kuwaiti top diplomat as saying, highlighting Britain’s commitment to protect Kuwait’s security.

On bilateral relations, the British foreign secretary said that London is proud of the “strategic partnership” linking the two nations, which continues to make significant headway across multiple fields, added the statement. The talks also covered a wide array of pressing matters of mutual concern, while the Kuwaiti and British foreign ministers exchanged their views on ongoing developments around the region and beyond, agreeing that the deals signed serve the collective interests of both nations, it said. The next round of talks is slated to take place in London next year, the statement said.

Lammy said the UK is working to strengthen cooperation with Kuwait in trade, investment and business, in addition to security and defense, particularly in light of the current challenging global security environment, especially in the Middle East. In an exclusive statement to KUNA on Sunday at the Saud Al-Nasser Al-Sabah Diplomatic Institute in Kuwait, the British secretary emphasized the historic and robust relationship between the UK and Kuwait. He pointed out that the two countries enjoy a “deep close friendship” that goes back more than a century.

He added that the bilateral relationship is built on strong people-to-people and cultural ties, as well as a solid partnership in defense and security that dates back to 1899, when official relations were established and laid the foundation for long-term cooperation and friendship. Lammy highlighted the strong educational and cultural links between the two nations, stressing that the presence of 10,000 Kuwaiti students in UK universities forms a strong basis for the future of the relationship.

Lammy explained that his visit falls within the framework of the strategic dialogue between the two countries, which aims to outline the next phase of bilateral cooperation. He noted the UK’s strong economic standing in Europe and Kuwait’s prominent role in the Gulf and the Middle East, saying that this partnership enables both nations to achieve significant progress together. He also noted that the visit comes at a time of serious geopolitical challenges and humanitarian suffering around the world.

Lammy emphasized both countries’ commitment to working together to alleviate the suffering of civilians in Gaza, underlining their joint efforts to push for a ceasefire and continued collaboration on humanitarian matters. Lammy added that UK-Kuwait cooperation also contributes to addressing other global crises in countries such as Sudan, Somalia and Yemen, where diseases and humanitarian emergencies are widespread.

Lammy expressed his satisfaction with the signing of memoranda of understanding, which unify resources and development visions, not only for the benefit of both countries, but also for children, women and all those suffering worldwide. He also pointed out that the UK has recently launched a new industrial strategy that outlines the government’s investment priorities, noting that there are promising opportunities for cooperation with Kuwait in sectors such as defense, space, artificial intelligence, quantum technologies, life sciences and sustainable and renewable energy, all of which can contribute significantly to both economies. – KUNA

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KFAED, UK sign MoUs to assist Sudan, Somalia

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KUWAIT: The Kuwait Fund for Arab Economic Development (KFAED) signed two memoranda of understanding (MoUs) with the United Kingdom’s Foreign, Commonwealth and Development Office (FCDO) to deliver joint emergency humanitarian aid to conflict-affected populations in Sudan and Somalia. In a statement to KUNA on Sunday, KFAED announced that both sides will jointly provide a humanitarian grant totaling $10 million—$5 million from each party—to support the United Nations Children’s Fund (UNICEF) in Sudan.

The assistance will help maintain access to essential services including healthcare, nutrition, water, sanitation, and child protection for vulnerable populations in the country. An additional grant of $5 million ($2.5 million from each side) will be allocated to finance a joint project supporting the efforts of the International Committee of the Red Cross (ICRC) in Somalia, the Fund added.

Acting Director General of KFAED Waleed Al-Bahar said the agreements underscore the Fund’s commitment to strengthening international partnerships in humanitarian relief, development, and peacebuilding. He emphasized that this renewed cooperation with the UK will facilitate the exchange of expertise and unify efforts to assist the most vulnerable communities in Sudan and Somalia, while reinforcing Kuwait’s leading humanitarian role regionally and globally.

Mamadou Sow, Head of the ICRC Regional Delegation for the Gulf Cooperation Council countries, praised the partnership as a symbol of shared humanitarian commitment. He noted that the grant goes beyond financial support, sending a strong message of solidarity with the Somali people. “This cooperation aims to restore vital services in long-marginalized communities, reflecting Kuwait’s long-standing humanitarian leadership and the UK’s enduring role in promoting global solidarity,” he said.

The MoUs were signed by Foreign Minister and Chairman of KFAED’s Board of Directors Abdullah Al-Yahya on behalf of Kuwait, and UK Minister of State for Foreign, Commonwealth and Development Affairs David Lammy on behalf of the British government. These MoUs fall under the framework of a cooperation agreement signed in February 2020 between KFAED and the UK’s former Department for International Development, establishing the foundation for joint humanitarian action to improve living conditions for refugees, displaced persons, and communities impacted by wars and natural disasters worldwide. — KUNA

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