Gold at highest price since June 22 -- Zomoroda

KUWAIT, July 10 (KUNA) -- Price of gold in international markets peaked to its highest since June 22, at a gain of 3.8 percent to USD 1,542 per ounce, a report by Zomoroda Group said here on Sunday, predicting the price would go up to USD 1,582 within weeks as a result of several factors.
The group's weekly report said gold saw the biggest weekly gain in New York over negative US jobs reports which showed unemployment at 9.2 percent, the worst figures in nine months. This brought on focus among traders on gold as the safest commodity against fears of inflation and economic crises.
The report predicted further hikes in price within the coming weeks, and this forecast is based on the reaction of the metal to the European Central Bank's decision to push interest rates up. The move was taken to lure liquidity to the banks, but the pressure on gold continued amid fears of inflation.
As for silver, the report cited an increase of eight percent in price as well last week, coming to USD 36.5 per ounce, compared to last week's USD 34 per ounce. More than seeking silver as a precious metal, investors sought it as an industrial metal and yet another guard against inflation.
The increase in price was welcome to the investors who hope to make gains on the large quantities they had acquired over the last few months. This preference for dealing in gold and silver stems in belief that there is no loss in trade in the metals, but only delay in profit at worst.
Local Kuwaiti sales by end of week were more in bullion and pure gold than in manufactured gold or jewelry. Price of a kilo of pure gold came up from KD 13,150, two weeks ago, to KD 13,650. Silver came up to KD 340 per kilo at a KD 40 increase.(end) smr.ysa.wsa KUNA 101308 Jul 11NNNN