Kuwait city: Head of Planning and Follow-up at Dar Al-Sabaek Company Bader Al-Rezaihan announced that gold prices have surged to unprecedented levels, surpassing USD 4,415 per ounce. The rise is attributed to the demand for safe-haven assets and expectations of US interest rate cuts.
According to Kuwait News Agency, Al-Rezaihan highlighted that signs of easing US inflation and softer labor data have bolstered investor expectations that the Federal Reserve might shift towards monetary easing in the global markets. He explained that lower interest rates decrease the opportunity cost of holding gold, thereby increasing its attractiveness as a hedge during periods of uncertainty. Moreover, a weaker US dollar enhances demand by making gold cheaper for international investors.
Al-Rezaihan further noted that ongoing geopolitical tensions and rising political and economic risks have driven investors towards safe assets like gold. This trend is expected to continue as markets anticipate key US growth and inflation data, which will shape policy expectations in the coming months.
Additionally, Al-Rezaihan reported that silver prices have experienced a significant rise, climbing over three percent to trade near USD 69 per ounce. This marks record levels amid a stronger investor appetite for precious metals within global commodity markets this year.