Uncertainty over the future of the Iran war and concerns about regional stability are driving a surge in gold-buying in Kuwait, as residents seek a traditional safe-haven asset while prices retreat from recent highs.
Gold shops in Kuwait City’s historic Souq Al Mubarakiya were crowded on Wednesday evening as the price of 21-carat gold fell to about 36.143 Kuwaiti dinars ($118) a gram, down by more than two dinars from the previous day.
“I’ve noticed gold prices have fallen but making charges remain very high,” said Hessa Al Hassan while shopping for a wedding jewellery set for her son’s forthcoming marriage. “I bought a Monaco bracelet two days ago and the making charge was more than five dinars per gram, which is much higher than before.”
Gold trader Abu Ahmad said demand has increased sharply for heavy gold bracelets, known locally as madhaad, particularly simple twisted designs weighing at least 20 grams that carry relatively low manufacturing charges.
Meanwhile, gold coins remain especially popular among Arab expatriate women in Kuwait. Egyptian resident Sanaa Ibrahim described the coins as both a nice adornment and an asset of value.
“These coins are beauty and savings at the same time,” she said. “I always try to buy at least one whenever I get the chance because they help preserve my savings.”
High demand
In Hawalli’s Ibn Khaldoun Street, another gold-trading hub, shops were similarly packed with customers this week as uncertainty surrounding the Iran war gripped the region. The rush came after US President Donald Trump threatened another wave of strikes on Iran, before later announcing progress towards a possible deal. It came after days of attacks during which a number of Iranian missiles and drones reached Kuwait.
Abu Khaled, 60, an Egyptian resident, said he bought a 10-gram gold bar and regularly converts part of his salary into small bullion. “Gold is for difficult times,” he said.
At the start of the war on February 28, gold bars of all sizes virtually disappeared from the Kuwaiti market as demand surged and imports were disrupted following the closure of Kuwait International Airport.
Gold market analyst Faisal Waleed Al Jassem said the recent decline in prices was a healthy correction and predicted that gold would eventually resume its upwards trajectory. “We have seen strong demand for gold bars of all purities since the beginning of the war, to the point that 24-carat bars have become scarce in the market,” he said.
He noted that consumer behaviour has shifted, with buyers increasingly favouring investment-grade products. After Eid Al Adha this month, demand rose for gold coins and heavier bullion products as a form of savings rather than jewellery.
Mr Al Jassem expects gold prices to continue falling in the short term before rebounding sharply after the conflict ends.
Blessed country
For many Kuwaitis, the rush for gold reflects broader anxieties about an uncertain regional environment. “Buying gold is not something new for Kuwaitis,” said Mariam Al Salem. “But the regional situation and the war have increased interest.”
She advised her daughters to buy gold coins and bracelets for the future, saying: “We don’t know what will happen. Kuwait is a blessed country but gold is for difficult days – and it’s beautiful too.”
The renewed demand comes as Kuwait continues to face security concerns linked to the regional conflict. Authorities said air defence systems intercepted hostile aerial targets on Thursday, while civil aviation officials diverted some flights as a precaution.
According to Kuwaiti military figures released this month, the armed forces have intercepted more than 1,260 hostile aerial targets over Kuwaiti airspace since the war began, including drones, and ballistic and cruise missiles. Several attacks targeted critical infrastructure, including Kuwait International Airport, where a strike this month killed one and wounded dozens more.