Price of gold kept slipping for the third week in a row in international markets pushed down by a stronger US dollar on the back of positive US economy data, a specialized report said.
The report by Al-Zummorroda Jewelry Company said that gold came down 3.5 percent by end of last week's trading as a result of the dollar gaining and reaching its highest against European currency.
Gold prices were affected by strong profit-taking as it slipped below USD 1, 662 per ounce and then USD 1,648 per ounce. After much fluctuation with strong demand checking the decline, the price reached USD 1,655 per ounce at the end of the week.
The report forecast more pressure on the dollar following a statement by the US monetary policy committee on keeping interest at 0.25 points till end of 2014, which would allow for more gains in the price of gold closer to the USD 1,700 threshold.
The strong demand keeping prices from sharp decline is from central banks and investment funds, the report pointed out, and most forecasts still suggest a price range close to the USD 2,000 per ounce despite the strong corrections in March.
Current prices are a good opportunity for medium and long term investment, and maybe even short term, though there is a cause for concern in the latter case in view of possible further strong corrections.
The report noted that factors which pushed prices up last year are still at play, and "any bump in economic data would result in panic and push prices up to new peaks." When it came to silver, the report said the metal was more in tune with the movement of the dollar, slipping 5.2 percent from opening price to break the USD 32 dollar per ounce mark for the first time in March to finally end the week up at USD 32.5 per ounce, at a slip of 1.4 percent.
The forecast is that silver would maintain its strength and top the USD 34.
5 per ounce mark due to actual demand, and that demand for the metal would double within a few months.
The other precious metals saw less volatility, the report said, due to modest trading on the one hand and consistent demand on the other. Platinum ended the week at USD 1,677 per ounce, while Palladium stayed at USD 703 per ounce.
As for the local market, 24 carat gold came to KD 14.7 for the first time since February, while 18 and 21 carat gold saw highest demand with considerable investment purchases, particularly small bullion.
Likewise, silver came down to KD 300 per kilo, compared to February's 330 and above, which means investment in silver is very timely.