KUWAIT CITY, Dec 24: Gold cemented its status as a financial asset and a hedge against major economic crises in 2025, recording a historic increase of approximately 65.3 percent, with the price per ounce surpassing USD 4,400 for the first time in history. Global forecasts indicate that gold prices are expected to continue rising in 2026, potentially reaching around USD 5,000 by the end of the last quarter. Two experts explained that 2025 marked a significant milestone in gold’s history, not only in terms of price growth but also due to sustained record global demand.
By the end of the third quarter, the global volume of gold traded reached approximately 1.31 tons, with a trading value exceeding USD 146 billion. The local market in Kuwait benefited from this global momentum. According to gold expert Alamdar Al- Mousawi, the movement of gold prices in 2025 was not random or solely driven by speculation, but resulted from historical accumulation and precise technical and economic analysis, which was clearly reflected in both global markets and Kuwait’s local market. He explained that gold, which has long been considered a safe haven during times of turmoil and crisis, entered a deliberate upward trajectory since the beginning of 2025. Gold prices have risen from around USD 2,620 per ounce in January to record highs exceeding USD 4,400 in recent days, fueled by geopolitical tensions, global inflationary pressures, and fluctuations in Central Bank policies, particularly those of the U.S. Federal Reserve.
These price peaks do not mark the end of the upward wave. According to technical analysis, they have formed strong support levels, reinforcing the long-term upward trend and providing the market with a new price base for future growth. Regarding future expectations, Al-Mousawi said 2026 could witness gold reaching unprecedented levels at certain stages if current supporting factors continue, including global political tensions, sovereign debt crises, and ongoing economic uncertainty. He emphasized that investing in gold is no longer a matter of luck, but relies on careful analysis of historical trends, technical analysis, and linking prices with economic and political events, noting that gold is currently entering a new phase of global revaluation
Meanwhile, investment and economic expert Alaa Mohammed Behbehani affirmed that gold proved its value as a financial asset and a hedge during major economic crises in 2025. He explained that gold prices rose approximately 65.28 percent over the year, climbing from around USD 2,620 per ounce at the start of the year to about USD 4,400 by year-end, an increase of roughly USD 1,700 per ounce. This represents an exceptional rise for an asset traditionally known for its slow and steady price movements. In an exclusive press statement, Behbehani affirmed that 2025 was a landmark year for gold, not only in terms of price increases but also due to sustained record global demand.
By the end of the third quarter, the global volume of gold traded reached approximately 1.313 tons, with a trading value exceeding USD 146 billion. Kuwait’s local market was part of this global momentum. Behbehani cautioned that these achievements could face some challenges, particularly a decline in consumer demand for gold jewelry and potential price fluctuations due to profit-taking. However, he emphasized that these factors do not change the overall positive outlook for gold as a hedging instrument, predicting that the precious metal will continue its strong performance throughout 2026, despite the possibility of temporary setbacks. Behbehani indicated that this rise was not surprising to those closely monitoring the global economy, noting that continued gold purchases by central banks were a major driver of prices. He revealed that net purchases reached approximately 53 tons in October alone, while total announced purchases from the start of the year through the end of October totaled around 254 tons, adding that this reflects global concerns about the strength of the dollar and U.S. government bonds. Behbehani affirmed that investors also showed significant activity in gold, particularly during the third quarter of 2025.
The World Gold Council reported trading of approximately 222 tons, with strong demand for gold bars and coins, driven by escalating fears over global economic risks, geopolitical tensions, expectations of interest rate cuts, and a weakening dollar. Regarding his 2026 outlook, Al-Behbehani indicated that his personal view, which is not a buy or sell recommendation, anticipates a continuation of the upward trend in gold. He stressed that the strength of this rise depends on the trajectory of U.S. interest rates and the implementation of short-term and long-term economic reforms, including developments in bond and stock markets, debt management, and the strengthening of the dollar. Concerning the Kuwaiti market, Al-Behbehani addressed the common question about the optimal time to buy gold, emphasizing that it should be approached from a clear investment perspective. He said gold is categorized into jewelry and investment, and true investment involves gradual, measured purchases over the long term rather than short-term speculation
By Marwa Al-Bahrawi Al-Seyassah/Arab Times Staff
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