Gold slumped as much as 1.8 percent to below $4,206 an ounce after ending the previous week down more than 2 percent, according to Bloomberg data published on September 27. Oil rose following Iran’s refusal to ease conditions for reopening the waterway after US President Donald Trump rejected its seven-day proposal and indicated negotiations would resume this week. The US-Iran conflict has entered its eighth month with Brent crude up more than 70 percent this year, Bloomberg figures show. Higher energy costs have sustained pressure on the Federal Reserve to tighten policy further against sticky inflation.
Local gold values in Kuwait reflected the international downturn with 24-karat gold recorded near KD 41.785 per gram, a Dar Al-Sabaik Company report stated. The same assessment placed 22-karat gold at approximately KD 38.300 per gram while silver traded around KD 756 per kilogram. Those local declines align with global bullion losing appeal as a non-yielding asset amid rising rate expectations.
A Reuters assessment of the Hormuz situation noted that the narrow passage normally carries nearly one-fifth of global oil and LNG supplies. Tanker transits have fluctuated sharply during the crisis with some vessels moving without tracking systems under direct government arrangements, the news service reported. Recent incidents such as a cargo ship struck by a projectile near Oman prompted pauses in maritime evacuation efforts and lifted oil more than 2 percent in a single session.
Brent futures settled around $75 per barrel in late June trading before rebounding on renewed concerns while WTI moved similarly, Reuters price data indicated. Storage tanks across the Gulf stood 50 to 60 percent full at that time raising risks of output curbs if tanker traffic lagged, according to Rystad Energy analysts cited by the wire service. Kuwait and other Gulf producers with limited alternative export routes have faced particular strain from the repeated disruptions.
The interplay between elevated oil and monetary policy has driven gold lower despite traditional safe-haven demand during geopolitical flares, a Moneycontrol review of market dynamics found. Spot gold traded near $4,060 an ounce in late June with futures also declining as investors focused on inflation and dollar strength rather than tensions alone. Markets priced in multiple Federal Reserve hikes including an 80 percent probability for December at one point according to CME FedWatch Tool data referenced in the report.
Kuwait Times coverage of domestic bullion trading highlighted a third consecutive weekly loss for gold at the end of June with the metal ending at $4,155 per ounce. The newspaper attributed the trend to a stronger US dollar index near 101 points and the Federal Reserve’s reaffirmation of tight policy for an extended period. Goldman Sachs had revised its year-end gold forecast downward to $4,900 per ounce from $5,400 citing sustained dollar strength and global rates, the Kuwait Times article added.
