Prices of gold remain high

Prices of Gold have maintained robust upward trend with the price per kilogram breaking the KD 14,300 barrier posting profits estimated at 8.5 percent this month. According to a report released by Al-Zomordah Group, an ounce of gold was priced at USD 1,632 on the international market, with the overall gains posted by the yellow metal amounting to USD 128 in July, the highest proportion since November 2009. Fresh negative reports about the US economy, namely the national product and the industrial sector, have pushed the prices of the precious metal higher than the USD 1,630 per ounce level, thus boosting purchases and profit generating during this month. Prevailing jitters in the global economy sector were part of the main causes for the hike of the prices of the gold and other precious metals, where the trend for finding a safe haven for investors expanded to include stock traders, and that happened despite some indications of possible settlement of the US debts crisis. Current trend of the prices of the yellow metal is stable, however concerns related to the decline in the US credit sector and fall of the US dollar rate render prospected drastic fall of the price of the gold unlikely, the report said, indicating that corrections in the past were checked with high demand for the yellow metal. In one of two scenarios, the price of the gold will range between USD 1,550 and USD 1,600 per ounce, in case the Republicans in the US approved the Democrats' scheme to lift the ceiling of the US debts and slashing public spending. In the other scenario, the price will reach the levels of USD 1,650 and USD 1,700 per ounce. However, such an eventuality is ruled out for it will deeply affect the global economy. As to the prices of the silver, they followed the trend of the prices of the yellow metal. In the week's trading, the prices of the silver stood at USD 40 per ounce. The highest level was posted on Wednesday, USD 45.4 per ounce, where the earnings reached 15 percent in July alone. However, the price of silver is unlikely to re-hit the level of USD 80.4 per ounce, posted early this year. The report indicated that trading on the domestic market moderately rallied, buoyed by higher investment awarness, with the price of a gram of 21-carat gold standing at KD 12.4, compared to KD 10.6 for the 18-carat gold per gram.