(MENAFN– Kuwait News Agency (KUNA)) KUWAIT – 10-30 (KUNA) – Gold prices fell to the $ 1644 an ounce level, down $ 22 at the end of last week’s trading, with continued pricing pressures on it for the second month in a row.
The Kuwaiti Company (Dar Al-Sabeek) report said today Sunday that the strength of the US currency is a direct cause of the sharp fluctuation in gold amid expectations of further interest rate hikes by the US Federal Reserve. (the Central Bank).
The report cited the company’s head of strategic planning, Adel Al-Fadhli, as saying US data released last Friday indicated the stability of the inflation index during the month of September, as it remained close to the highest level in four decades. . according to the measurement of the consumer spending index (CPI), which grew by 0.5 percent compared to last August.
Al-Fadhli added that inflation in the US economy is not declining as hoped for by the Federal Reserve, which means more fiscal tightening policies in the coming months and rising interest rates at unprecedented rates until the inflation rate that aims will not be achieved at 2 or 3 percent on an annual basis.
He pointed out that the US dollar index rose 0.2 percent to 110.90 points, while 10-year US Treasury bond yields crossed the 4 percent mark.
He indicated that financial markets await the Federal Reserve’s monetary policy committee meeting next month, with expectations of raising interest rates by 75 basis points for the fourth consecutive time in an effort to curb inflation in the U.S. which means greater pressure on gold prices in the global market.
He said gold futures contracts (delivery in December) fell by 1.3%, or the equivalent of $ 20.8 an ounce, on global exchanges, with expectations of a sharp fluctuation in its prices. which will continue in the coming weeks.
Regarding the local market, Al-Fadhli stated that the price of (24) carat gold amounted to 16.5 dinars per gram, while the (21) carat amounted to 14.4 dinars per gram, while silver it recorded 240 dinars per kilogram. (the end)
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