Gold price hike impacts Kuwait sales

SALES SLUMP: Gold sales in Kuwait fall as yellow metal's value continues rise. (Getty Images)

The continuous upward trend in the price of gold over the past six months worldwide has impacted the Kuwait market where purchases have dropped 30-40 percent, according to local gold merchant Essa Shibeeb.

He added that sales during this period in past years were traditionally high due to the upcoming Eid festival when people bought gold as gifts. Sales this year are at a low, he told KUNA.

Recent reports have suggested the price of gold could climb to as high as KD11,200 per kg by the end of the year, driven by US dollar weakness and increasing demand for gold as a form of investment.

A report by the World Gold Council last month said gold demand for investment purposes rose in Q2 this year to 222.3 tons from 151.9 tons, compared to the same period last year.

The report added that global demand for jewelry dropped 22 percent to 404 tons from 512.8 tons, compared to 2008.

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