'Dar Al-Sibaak': Gold Starts the Week at $4,165 per Ounce

Gold opened the new week at $4,165 per ounce, as investors awaited US economic data and interest rate trends, following a limited recovery after a sell-off that had pushed the precious metal close to the $4,000 level.

Dar Al-Sanabek, a Kuwaiti company, stated in its report issued yesterday, Sunday, that gold enters a new week amid uncertainty in global markets, with mixed US economic indicators and continued anticipation regarding monetary policy direction, alongside the impact of geopolitical developments and stock market volatility.

The report clarified that US inflation data showed the Consumer Price Index rose to 3.7 percent year-on-year in September, compared to 3.4 percent in August, surpassing expectations of 3.6 percent. Producer prices also rose by 3.6 percent year-on-year, exceeding expectations, which heightened concerns about persistent inflationary pressures and the difficulty of returning inflation to target levels in the near term.

It noted that mixed economic indicators present two potential paths for gold; the probability of interest rates remaining stable in the near term could support prices, while expectations of later monetary tightening could limit opportunities for further gains, especially if the US dollar and yields rise.

The report highlighted that geopolitical developments in the Middle East and the war in Ukraine, along with risks threatening global navigation security and energy supplies, remain influential factors in gold’s movement. These risks may boost demand for the precious metal as a safe haven, while rising energy prices and persistent inflationary pressures could increase the likelihood of interest rates remaining at elevated levels.

Regarding markets, the report mentioned that results from major US companies, including Meta, Tesla, and Netflix, could influence investor trends. A decline in confidence in growth prospects could increase demand for safe-haven assets, while strong results could support equity appetite.

It added that investors are awaiting data on the housing and jobs markets, as well as US purchasing managers’ indices, during the week of October 19–23, as they provide indicators on economic performance and activity trends in the industrial and service sectors. Strong data accompanied by persistent inflation could support the US dollar and increase pressure on gold.

Resistance and Support Levels

Regarding technical expectations, the report clarified that the $4,200 per ounce level represents a key resistance. A breakout and stabilization above it could pave the way for reaching $4,242, then $4,331, and up to $4,500 if buying momentum improves and supportive factors continue.

Conversely, the $4,150 level represents a primary support zone, followed by $4,100. A break below could lead to a test of $4,050 and then $4,000 per ounce.

The report emphasized that breaking key resistance levels requires a clear return of buying momentum, noting that gold’s trend remains influenced by interest rate expectations, the movement of the US dollar and yields, as well as economic and geopolitical developments.

Local Gold Prices

On the local level, the report noted that gold prices in Kuwait are affected by global ounce movements. The price of 24-karat gold per gram reached approximately 42 Kuwaiti dinars, equivalent to about $136, while 22-karat gold recorded around 38.5 dinars per gram, equivalent to approximately $124.

The price of a kilogram of silver reached approximately 632 dinars, equivalent to about $2,050.