(MENAFN - Kuwait News Agency (KUNA)) Gold prices have come down by over three percent by end of last week to reach USD 1,636 per ounce, which is a four-month low thought to be the result of anxiety related to the US financial cliff dilemma.
According to the report of Sabaek Al-Kuwait company, the yellow metal was affected by sharp sales and profit-taking as well as annual closings. However, gold remains up for the second year in a row despite this drop at an up of five percent since start of 2012.
The report expects gains within the few coming days to the range of USD 1, 665 per ounce, in view of strong demand and continue shortage of supply in the world market. The report predicts "the strongest support to prices would be central banks' continued effort to increase gold reserves." When it comes to silver, the report noted a steeper decline of eight percent of its value by end of last week to USD 30.1, in the biggest decline in a single week since last May.
With the volatility of price and moderate value compared to other precious metals, the while metal is still sought by investors and speculators. Some estimates predict a price of USD 40 per ounce in the first half of 2013 amid
continued strong industrial demand, coupled with the jewelry market demand.
The local gold market was gaining from this drop and there was hike in sales of all types of jewelry, particularly worked gold, and 21 carat gold was selling at KD 13.1 per gram while 18 carat was selling at KD 11.3 per gram.
Pure gold was down below the KD 15,000 per kilo mark for the first time in four months, which promoted some investors to hike their 24 carat gold reserves, eyeing good profit-taking on the short-run.