The price of gold continued its decline in global markets for the second consecutive week due to the continuing rise of the price of the US dollar exchange rate, and improved business environment in the United States, a specialized economic report said on Sunday.
Report issued by (Kuwait's SABAEK) Company said that the positive data of the US labor market also affected the price of gold, touching its lowest level since last November at USD 1147 per ounce, and by falling more than 2.2 percent before closing at USD 1154.
The strength of the US dollar against the major currencies was the reason for the sliding of the gold price, as Euro broke the level of 1.050 against the US and the pound sterling recorded USD 1.50 while the Japanese Yen exceeded the 122, and all factors that pushed the yellow metal to fall due to the escape of liquidity to stocks markets and dollar-denominated investments, the report added.
The report predicted that the price of gold will reach the level of USD 1132 in the coming days in the case of the continuation of the positive results of the greenback, adding that the weak demand from investment funds for gold had a major impact on the price collapse.
The Kuwait's SABAEK report also added that sliver prices also fallen by more than 5.3 percent to USD 2.15 per ounce, with difference of 55 cents from the beginning of the week.
The report predicted that the white metal prices stabilized in a slight range of less than USD 15 and not more than USD 16, where the electronic trading is the major factor in moving prices.
The report emphasized that whatever silver sales within the industrial market hit it will not be able to climb prices to their previous levels achieved last January.
The rest of the precious metals have followed the same gold path in falling, where the platinum trading at USD 1117 per ounce with difference of USD 41 for the beginning of the week, while the palladium closed at USD 793 per ounce with difference of USD 31, which is the biggest loss for the Palladium since last January, the report said.
The local market marked stable condition with a gradual increase in the procurement process until the end of last week, despite the shortage of gold offered for sale amounts, especially in raw kilo and alloys of all sizes.