Last week, gold prices experienced significant volatility, declining notably to close at $2,856 per ounce by the end of the week, influenced by various economic and geopolitical factors. Gold prices had risen at the beginning of the week, reaching a record high of $2,955 per ounce on Monday after opening at $2,939 per ounce. However, these gains were short-lived, as gold declined over the following days, breaking below the $2,900 per ounce threshold, pressured by a stronger U.S. dollar, which reached its highest level in ten days at 107.66 points against other major currencies.

According to a report issued by Kuwait’s *Dar Al Sabaek* (The Kuwaiti Bullion Company) on Sunday, the pressure on gold intensified following the announcement of a potential U.S. interest rate hike, prompting investors to sell the precious metal to capitalize on higher yields from U.S. government bonds. The report noted that U.S. trade policies also played a role in this decline, as President Donald Trump announced the imposition of 25% tariffs on Mexican and Canadian goods starting from the upcoming Tuesday, along with an additional 10% tariff on Chinese imports. This raised market concerns about the inflationary implications of these policies.

The report highlighted that U.S. economic data showed a slight slowdown in inflation, with the Personal Consumption Expenditures (PCE) index dropping to 2.5% in January compared to 2.6% in December. Additionally, consumer spending declined by 0.2%, surprising the markets and contributing to further pressure on gold prices. According to the report, gold fell by 1.65% on Friday, closing at $2,856 per ounce, recording weekly losses of 1.8%, despite achieving a slight monthly gain of 0.5% during February.

The report indicated that this decline followed a series of gains over eight consecutive weeks, which it described as a natural correction amid profit-taking by investors. Regarding future expectations, the report suggested that gold will remain price-supported in the long term, especially if economic crises worsen or concerns about the stability of the global financial system increase. It noted that many analysts believe any price decline will be temporary, as gold will benefit from fundamental supportive factors such as geopolitical tensions in regions like Ukraine and Gaza, as well as concerns about global economic policies. However, the report warned that gold could face further pressure if the U.S. dollar continues to strengthen and U.S. bond yields rise.

The *Dar Al Sabaek* report stated that markets are awaiting the U.S. jobs report for January this week, along with developments related to trade tariffs. Investors are also monitoring key economic data such as the Manufacturing and Services Purchasing Managers' Index (PMI), factory orders, and foreign trade data, in addition to speeches by U.S. Federal Reserve officials.

On the local market, the report noted that the price of 24-karat gold reached approximately 28.540 dinars per gram, while 22-karat gold was priced at around 26.160 dinars per gram. Meanwhile, the price of silver stood at 349 dinars per kilogram.