KUWAIT: The gold price went down to $1644 per ounce by losing $22 by the end of last week's trading, with a prolonging price pressure for the second consecutive month. The strength of the US dollar is a direct reason behind the severe fluctuations caused by gold, amid expectations of further interest increase by US Federal Reserve (Central Bank), the Kuwaiti Dar Al-Sabaek Company report said.

The report quoted the company's head of strategic planning Adel Al-Fadhli as saying, "The US data issued last Friday indicate the steadiness of the inflation index during last September as it was close to its highest levels for the last four decades, according to the Personal Consumption Expenditure Price Index (CPI) that went up by 0.5 percent, compared to last August".

The inflation in US economy is not decreasing as wished by the US Reserve System, which means further financial strict policies during the upcoming months, as well as increasing the interest price to unprecedented rates, to allow the inflation rate to reach the desired percentages of 2 or 3 percent, on an annual base, he added. The increase in US dollar index by 0.2 percent to stabilize at 110.90 points, while the US Department of Treasury yields (10-year maturity) crossed the 4 percent threshold, Al-Fadhli added.

The financial market are expecting the upcoming meeting of monetary policy committee affiliated to the US Federal Reserve System in November, with expectation of an increase in the interest by 75 points for the fourth consecutive time, he said. This comes as an attempt to halt the inflation in US, which would result in further pressure on gold prices in the international markets, he affirmed, he added.

Gold December futures dropped by 1.3 percent, equivalent to $20.8 per ounce in the international bourses, with expectations of continuous severe fluctuations during the coming weeks, he said. Meanwhile, Al-Fadhli added that the gold price in local market of 24 karat reached KD 16.5 per gram, while 21 karat recoded KD 14.4 per gram, whereas silver registered KD 240 per kilo. - KUNA