– Gold prices rose “strongly” to USD 1,681 per ounce at the end of last week’s trading, after the positive results shown by the monthly jobs report and the drop in the unemployment rate in the US.

In a report, Kuwait Sabayik Company stated Sunday that gold prices benefited from the USD exchange rate’s noticeable decline against major currencies by about 1.5 percent, and the decline of the US Treasury bond yields.

It explained that the US labor market gave positive indications after the employment rate rose by261,000 jobs during the past month, which strengthens the position of the Federal Reserve (the US Central Bank) to follow up on its strict plans to face inflation by raising interest rates.

The unemployment rate fell to 3.5 percent, contrary to expectations, which indicates that the US monetary policy is entering a new phase that may require smaller increases in interest rate, added the statement.

It stated that gold futures contracts (for December delivery) rose by 2.8 percent, equivalent to USD 70 an ounce at the end of last week’s closings.

As for the local market, the report indicated that gold prices closed last Friday at KWD 16.85 per gram (24) karat and KWD 15.45 for 22 karat, while silver closed at KWD 256 per kilogram

Source: Kuwait News Agency