(MENAFN - Arab Times) Price of gold was going up once again last week on the back of a dollar weakened against the euro and supported by hike in demand in the jewelry market, said a specialized report here, Sunday.
The "Sabaek Al-Kuwait" report said the yellow metal peaked at 1,682 an ounce on Wednesday, coinciding with record rates for the euro against the US dollar. Analysts forecast continued hike to break the 1,700 mark within a matter of days, if it breaks the current peak price. The upward trend is expected to dominate the market, especially in view of the Friday US closing price of 1,670 per ounce.
This forecast was further supported by a consideration of US job market data issued on the weekend. Unemployment figures went up, but only to 7.9 percent. Negative economic data last week pushed gold higher, particularly after drop in the retail, consumer confidence, industry, and non-perishable goods indices. "This confirms gold as investors' commodity of choice and haven," said the report.
Demand for gold was pushed up by the jewelry industry and the metal maintained its high value. "This does not exclude any corrective activity which could bring markets back to square one," the report cautioned. There is also the impact of fluctuations in US and European bourses, which would bring new opportunities for those who missed out on the buying spree or went too fast with their profit-taking.
When it comes to silver, prices went up and down in harmony with gold prices, but took sharper turns with the margin between highest and lowest price to 0.5 last week, which is a fluctuation rate of 4.5 percent.
Silver ended the week at 31.9 per ounce, maintaining gains though still far from peak price of 49 per ounce, reached April 2011. The report indicated that other precious metals maintained good price levels as well and were little affected by negative economic data, since they are supported by increase in demand. The forecast was for further hikes in price of platinum and palladium, amid rumors of decline in supply from South Africa mines.
Moving on to the local market, the report noted increase in demand with gold settling at KD 15,100 a kilo, while silver came to KD 290 a kilo. "There was no profit-taking last week, in view of belief in the market that the metals would make even more gains within coming days."