Gold prices surge past $4,000 an ounce as investors seek safety amid global economic and geopolitical uncertainty. The rally marks a record high in international markets, driven by heightened tensions, a weak US dollar, and continued demand for secure investments. In Kuwait, gold prices reached KD 39.40 per gram for 24-karat, KD 36.20 for 22-karat, and KD 29.60 for 18-karat gold.
Market experts say gold remains highly valued both as a long-term investment and a cultural asset. Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, explained that purchases are often occasion-driven rather than discretionary.
Gold climbed above $4,050 per ounce, with silver also reaching record levels above $49.50. Year-to-date, gold has gained 54 percent, following a 27 percent increase in 2024. Silver rose 71 percent, reflecting similar investor trends. Analysts say the rally outpaces gains in global stocks and even cryptocurrencies such as bitcoin.
Fakrudeen Ali, a Dubai-based bullion specialist, cited geopolitical instability, including Israel’s war in Gaza, as a key factor. Central bank purchases, ETF inflows, and US dollar volatility have also fueled strong demand for gold.
Kalyanaraman reported rising interest from buyers across major markets, including Kuwait. He noted that 22K and 18K jewelry remain popular, supported by festive season pre-bookings, new collections, and promotional campaigns.
Gold holds deep cultural significance in Arab traditions. Dr Nermeen Kassem of Gulf University for Science and Technology said it symbolizes both wealth and sentiment. It is often gifted during weddings, births, or personal achievements. She explained that the popular saying “zeena w khazeena” reflects gold’s dual role as adornment and secure investment.
Analysts also point to broader economic concerns, including delays in US economic data and potential interest rate cuts amid global uncertainty. Some predict gold could rise further, possibly reaching $5,000 an ounce by 2026.
An instructor in Kuwait emphasized gold’s security compared to stocks, real estate, or currency markets. She said gold’s universal demand and stable value make it a timeless investment.
Bullion jumped 12 percent in September alone, lifting silver, platinum, and palladium. Central banks worldwide are expected to purchase around 1,000 metric tons of gold in 2025, reinforcing the ongoing bullish trend.
Overall, gold prices surge continue to signal investor confidence in the metal as a safe-haven asset, blending financial security with cultural and industrial significance.
