Price Of Gold Drops Amid Lower Oil Price, Greek Austerity Measures

Gold prices continued to drop last week by 1.5 percent to USD 1,478 per ounce, affected by the drop of oil prices and the approval of the Greek austerity measures, said a local report on Sunday.

Gold dropped to its lowest point in value for seven weeks, leaving behind gains equivalent to 25 dollars-per-ounce after the positive news of the Greek crisis, and the government’s approval of austerity measures, which gave the euro extra strength against the dollar, read a report conducted by Kuwaiti-based Al-Zomorodah Group.

The drop of oil prices also attributed to this decline, by providing many investors the chance to enter the market leading to an increased demand of gold, particularly in emerging markets such as India and China, which together represent a third of the metal’s global market.

Locally, the report mentioned an increase of the purchase and selling of gold across all sectors, with this leading to the drop of one kilogram of pure gold to KD 13,150 – its lowest level since mid May.