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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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Zain showcases efforts in leveraging tech innovation to advance sustainability goals

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KUWAIT: Zain announced its sponsorship and participation in the Kuwait Sustainable Energy Week (KSEW), held in collaboration with the Ministry of Electricity, Water & Renewable Energy, and the Regional Center for Renewable Energy and Energy Efficiency (RCREEE). At the event, Zain showcased its efforts in leveraging technological innovation to support sustainability goals and reaffirmed its role as a strategic partner to the public sector in the transition toward a sustainable digital economy.

Zain took part in the opening ceremony, attended by the event’s patron, Dr Subeeh Al-Mukhaizeem, Minister of Electricity, Water & Renewable Energy, alongside Nawaf Al-Gharabally, CEO of Zain Kuwait, ministry officials, company executives, and a distinguished group of local and international experts in energy and sustainability. This participation came as part of Zain’s ongoing strategy to strengthen its presence in national initiatives aimed at reinforcing the principles of sustainability and digital transformation. The company firmly believes in the importance of harnessing modern technologies to serve Kuwait’s environmental and developmental objectives.

During the event, Zain hosted a dedicated booth at the accompanying exhibition, where it showcased a range of its latest ICT solutions that support sustainable goals. These included innovations in smart cities, smart meters, and other solutions that help reduce carbon footprint and enhance energy efficiency. The company’s support to this national initiative reflects its continued role as a strategic government partner in the transition toward a sustainable digital economy. It also highlighted Zain Group’s broader commitment to achieving net-zero emissions by 2050, in line with global and regional efforts to combat climate change.

Zain also took the opportunity to highlight its Smart Meters Project, launched in collaboration with the Ministry of Electricity and Water back in 2017. The project marked a key milestone in upgrading Kuwait’s energy infrastructure and paved the way for the adoption of further smart and sustainable solutions nationwide. The company reiterated its support for initiatives and projects that advance the future of clean energy and contribute to building a comprehensive national sustainability ecosystem. It emphasized that collaboration between the public and private sectors remains the optimal path to achieving the country’s sustainable development goals.

Zain has set strategic targets to reduce its carbon footprint and aims to reach carbon neutrality by 2050. To this end, the company continues to explore cutting-edge technologies such as 5.5G, artificial intelligence, and renewable energy, which can help minimize the environmental impact of the ICT sector. Reinforcing its commitment to sustainability and clean energy initiatives, Zain recently installed a solar panel setup at the outdoor car park in its headquarters. The initiative promotes the use of clean energy to contribute to powering the company’s buildings and reducing its carbon emissions.

Reaffirmed its role as a strategic partner to the public sector in the journey toward a sustainable digital economy

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Dust storms sweep across Kuwait; winds surpass 60 km/h

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KUWAIT: A massive dust storm hits Kuwait. Kuwait is currently experiencing strong northwesterly winds causing widespread dust storms, with wind speeds surpassing 60 kilometers per hour and visibility falling below 1,000 meters in several areas, particularly in exposed regions. - KUNA

KUWAIT: A massive dust storm hits Kuwait. Kuwait is currently experiencing strong northwesterly winds causing widespread dust storms, with wind speeds surpassing 60 kilometers per hour and visibility falling below 1,000 meters in several areas, particularly in exposed regions. – KUNA

KUWAIT: Acting Director of the Meteorology Department Dharar Al-Ali said Kuwait is currently experiencing strong northwesterly winds causing widespread dust storms, with wind speeds surpassing 60 kilometers per hour and visibility falling below 1,000 meters in several areas, particularly in exposed regions. Speaking to KUNA on Saturday, Al-Ali attributed the unstable weather conditions to the extension of a surface depression accompanied by a hot and dry air mass. This has led to rising temperatures, soil disintegration, and an increase in airborne dust.

He urged citizens and residents, especially those suffering from asthma and allergies, to wear protective masks when heading outdoors. Al-Ali also cautioned beachgoers about high sea waves, which may reach up to seven feet, and advised highway users to exercise extreme caution due to poor visibility. The official further called on the public to stay updated with the latest weather forecasts by following the Meteorology Department through its official website, mobile application, and social media platforms. — KUNA

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Gulf Housing Week focuses on sustainable development

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KUWAIT: The Public Authority for Housing Welfare (PAHW) announced that Kuwait will host the third edition of the Gulf Housing Week from May 18 to 22, under the theme “Real Estate Development for Sustainable Housing.” Deputy Director General for Public Relations and Development and official spokesperson of PAHW, Omar Al-Ruwaih, said in a press statement that the event comes as part of ongoing efforts by Gulf Cooperation Council (GCC) states to strengthen regional cooperation in the housing sector.

The initiative aims to enhance integration, address key housing challenges, and promote the exchange of expertise to support sustainability and improve quality of life across the region. Al-Ruwaih noted that the event will feature a wide range of activities, including panel discussions, a specialized exhibition, and the second edition of the Gulf Housing Hackathon, which will see the participation of male and female students from across the GCC.

He emphasized that the week’s agenda is designed to foster collaboration, encourage best practices in housing and urban development, and highlight the latest technologies supporting sustainable housing solutions. The event will commence with the 47th meeting of the GCC Technical Committee on Housing Affairs. The following day will see the official opening ceremony and the inauguration of the accompanying exhibition. On May 20, the 26th meeting of senior housing officials will be held, culminating on May 22 with the 23rd meeting of GCC Ministers Responsible for Housing Affairs.

Al-Ruwaih stressed that Gulf Housing Week seeks to encourage public-private partnerships, promote innovative and sustainable housing initiatives, and contribute to the development of integrated, safe residential environments for GCC citizens. A series of panel sessions will take place over three days, covering topics such as real estate development prospects in Kuwait, public-private partnerships in PAHW projects, and financing strategies for sustainable housing. Discussions will also address smart applications in Gulf housing projects, technological innovations, and solutions to housing challenges faced by the region. — KUNA

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