Gold prices rose 3.3 percent in the past week trading crossing the psychological barrier of USD 1,330 per ounce, according to Sabaek Al-Kuwait Company.
The gold prices are forecast to climb further, in the foreseeable future, due to mounting tension in the Middle East and concerns surrounding US and American growth rates, said Rajab Hamed, the company Chief Executive Officer (CEO), in a statement on Sunday.
Investors across the globe have anew sought refuge in the yellow metal after the US Federal Reserve cut the dollar rate vis a vis the other hard currencies, said the CEO, adding that the recent Fed decision would be in favor of gold traders in case it proceeded with Quantitative Easing (QE) to reach USD 35 billion per month; thus concerns about inflation may mount and lead to greater investments in the gold.
However, the chief executive cautioned that he forecast limited fluctuation of the gold prices, upward and downward, thus chances of generating profits would “not be as easy as they were in the past weeks.” Quantitative easing (QE) is the Federal Reserve’s program of buying bonds from its member banks. The Fed purchases U.S. Treasury notes and mortgage-backed securities (MBS), and issues credit to the banks’ reserves to buy the bonds. The purpose of this expansionary monetary policy is to lower interest rates and spur economic growth.
As to silver, the CEO Hamed said prices of the white metal have recently posted drastic rise, reaching USD 21 dollars per ounce, climbing by 6.6 percent, noting that experts have forecast the current profit-reaping from investment in the silver, namely by the international industrial sector, the banks and the investment funds.
“Certainly, the silver prices are tending to rise currently due to demand hike by the industrial sector,” he said.
Other precious metals have also followed suit of the gold and the silver, with the platinum trading at USD 1,457 per ounce and palladium at USD 822 per ounce. The Sabaek Al-Kuwait CEO predicted that the platinum rate may reach USD 1,500 per ounce and Palladium USD 900 per ounce.
As to the local market, there was some activity in the middle of the past week, buoyed by recovery of the global gold markets. One kilogram of gold in the domestic markets rose KD 400 upon the Friday closing, reaching KD 11,950. Moreover, investors shifted to purchase of the raw silver, though its price had exceeded KD 200 per kg since six weeks ago.
Source : KUNA Kuwait News agency
