Gold prices surge to USD 2,414 per ounce

Gold Prices surged to USD 2,414 per ounce by last week, prompted by expectations of American interest rate decrease. A report issued on Sunday by local company, Dar Al-Sabaek, told that the American Federal Reserve (the Central Bank), intends to lower interest rate by next September, thus prompting price increase of precious metals. Central banks and investors all over the globe intensified gold purchases over the past few weeks, as it is a safe refuge in times of geopolitical tensions. Silver also logged an unprecedented 4.8 percent increase to USD 315 an ounce last week, the first rise of its kind since February 2013. The augmenting tensions in the Middle East and the ongoing Ukrainian crisis boosted the exponential rise of gold and silver prices, amplified by the Chinese Central Bank selling US bonds and purchasing gold. Investors all over the world are keeping an eye out on remarks of US Federal Reserve officials as well as analyzing meeting minutes to determine date of interest rate decrease. Local ly, 24-karat gold is worth KD 23.9 (USD 73) per gram, while the 22-karat reached KD 21.9 (USD 66) per gram and silver closed at KD 350 (USD 1,147) per kilogram. Source: Kuwait News Agency