A specialized report released by Kuwaiti company Dar Al-Sabaek highlighted on Sunday that heightened military and geopolitical tensions are the primary drivers behind the significant surge in gold prices observed since the beginning of last week, resulting in prices reaching a new peak. Despite experiencing some profit-taking activities, with gold prices temporarily settling at $2,345 per ounce by the end of last Friday’s session, they remain historically high due to ongoing military operations in the Middle East and the detainment of commercial ships near the Arabian Gulf.

The report anticipates that gold prices will continue to rise throughout the week as long as military tensions persist in the region, particularly following recent attacks launched by Iran against the Israeli occupation. Geopolitical factors currently outweigh technical considerations, propelling gold prices sharply upward, as witnessed last week with a $150 per ounce increase before a correction occurred towards the end of trading. Gold futures contracts for delivery in June surged to $2,374 per ounce, marking the eighth record level reached in less than a month, after peaking at $2,448 during the previous week.

The report predicts further increases when markets open the following day, emphasizing the continuous presence of factors driving gold to its highest levels. Central banks, notably the People’s Bank of China, continue to bolster gold reserves, with China increasing its holdings by 12 tons in February, totaling 2,257 tons. Gold is currently viewed as a crucial investment amid geopolitical risks, with investors closely monitoring developments in the Middle East, American and Chinese economic events. The report anticipates gold reaching new peaks throughout the week as long as military risks persist, particularly in the Middle East.

In the local market, the price of 24-karat gold stands at 23.5 dinars per gram (approximately $71), while 22-karat gold is priced at 21.55 dinars per gram (around $66). Silver closed at 328 dinars per kilogram (approximately $1,000). Note: The ounce is a unit of mass measurement, equivalent to 28.349 grams in some systems and 31.103 grams in the measurement of precious metals. (KUNA)

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