05/10/2026 04:01 AST
Gold prices ended last week's trading lower at $4,142 per ounce, recording losses for the second consecutive week as rising US Treasury yields continued to weigh on the precious metal and limited its ability to benefit from weaker US labor market data. In a report issued Sunday, Kuwait's Dar Al-Sabaik Company said gold moved sharply during the week, attempting to reclaim the $4,200-per-ounce level but failing to sustain gains above it before declining toward the end of the week amid continued pressure from higher US Treasury yields.
The report said the decline came despite weaker-than-expected US employment data. The US economy added only 29,000 non-farm jobs in September, compared with market expectations of about 90,000, while the unemployment rate rose to 4.2 percent from 4.1 percent. The data reinforced expectations that the US Federal Reserve would likely leave interest rates unchanged at its upcoming meeting.
However, the rise in Treasury yields limited the impact of the weaker employment figures on the US dollar and gold prices. Dar Al-Sabaik said higher US Treasury yields remain a key factor weighing on gold, as rising yields increase the opportunity cost of holding the non-yielding asset. Despite the weaker labor market data, yields remained elevated, prompting investors to reassess expectations for US monetary policy in the coming months amid persistent inflation concerns.
The report noted that the Federal Reserve raised interest rates by 25 basis points in September to a range of 3.75 to 4 percent, with markets now awaiting further signals that could shape expectations for monetary policy at upcoming meetings. The US dollar also remains a major influence on gold prices. A stronger dollar makes gold more expensive for holders of other currencies, potentially reducing demand for the precious metal.
The report said markets are also closely monitoring oil and energy prices and their potential impact on inflation. Rising energy prices could reignite inflationary pressures and influence expectations for interest rates, while declining prices could give central banks greater room to ease monetary policy. Geopolitical developments in the Middle East also continued to influence market sentiment, with investors maintaining demand for gold as a safe-haven asset during periods of heightened uncertainty.
Dar Al-Sabaik said investors will focus this week on several US economic indicators and events, including the services sector index, minutes of the Federal Open Market Committee meeting, comments from Federal Reserve officials and consumer confidence data. The indicators are particularly important following the weak employment report, as they could provide further insight into the extent of the labor market slowdown and its implications for US monetary policy.
The report said stronger economic activity and renewed inflationary pressures could keep bond yields and the dollar elevated, creating further pressure on gold. Conversely, additional signs of an economic slowdown could strengthen expectations of unchanged or lower interest rates, providing support for the precious metal. From a technical perspective, Dar Al-Sabaik identified $4,200 per ounce as a key resistance level after gold failed to hold above it last week. A sustained break above $4,200 could open the way toward higher resistance levels.
On the downside, support is seen around $4,100, followed by the $4,000 level, which the report described as an important psychological and technical threshold. The report said movements in the US dollar and Treasury yields will remain among the main factors determining gold's direction in the coming period, alongside energy prices and geopolitical developments. Locally, the price of 24-karat gold reached approximately KD 41.460 per gram, equivalent to about $134, while 22-karat gold stood at around KD 38 per gram, or approximately $123. The price of a kilogram of silver reached about KD 657, equivalent to roughly $2,133.
KUNA
Please wait...