Gold price up, expected to climb further

KUWAIT: The US Federal Reserve’s recent decision to slash interest rate on the US Dollar and ongoing trade war between Washington and Beijing contributed to lifting gold prices in the past two days from $1,400 to $1,475 per ounce. A report issued yesterday by the Kuwaiti Sabayek company for precious metals said that gold price, according to “most investors,” would exceed $1,500 oz. The yellow metal’s rate reached the highest level since 2013 when it has recently hit $1,475 oz, buoyed by a weak US Dollar and investors’ inclination toward bourses and global stocks. The US Federal Reserve policy of trimming the interest rate will most certainly push the precious metal price higher than the $1,500 oz, according to the Sabayek Company’s report. Continuing commercial war between the US and China will lead to higher commodity prices, thus the US Dollar value is forecast to drop, the report said, indicating that this situation would “serve the yellow metal and cause it to climb in the coming days.” Locally, sales in July were low with upcoming summer vacation and the Eid Al-Adha, in addition to hike of global prices due to geopolitical factors in East Asia, as well as the global trade war. The report says the prices in the local market will remain low due to investors’ jitters and anticipations. – KUNA

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