Gold Prices Reach Two-Week High: What This Means for Investors and Businesses in Oman

• By Observer Web Team
• August 5, 2025August 5, 2025
• bullish momentum gold prices interest rate cuts
• With 0 comments

Gold prices extended their upward trend for a third consecutive session on Monday, closing with a modest 0.32% gain, according to Vijay Valecha, Chief Investment Officer at Century Financial. However, during Tuesday’s Asian trading session, prices showed minimal movement, dipping slightly by 0.10% and hovering near the $3,370 level.

The precious metal is trading close to a two-week high reached recently, as investors increased expectations for interest rate cuts at the upcoming Federal Open Market Committee (FOMC) meeting. This shift follows weaker-than-expected US labor market data released late last week.

In the UAE, gold prices stand at:

• 24 Carat: RO42.65
• 22 Carat: RO39.00
• 18 Carat: RO31.55

The CME FedWatch Tool currently reflects a 90.1% probability of a 25 basis point rate cut at the September FOMC meeting, a significant rise from 63.3% a week ago and 80.3% the previous day. A lower interest rate environment is typically favorable for gold, which does not yield interest. Moreover, ongoing trade-related economic uncertainties continue to support demand for gold as a safe haven. Market participants are now closely monitoring today’s PMI data to assess the health of the US economy.

Technically, gold’s strong rally since Friday has pushed prices above the key $3,365 resistance level, accompanied by a rising Relative Strength Index (RSI) above 60 on the 4-hour chart, signaling short-term bullish momentum. The price also remains above the 9-period Simple Moving Average (SMA) on the 4-hour chart, reinforcing a positive market outlook for the day.

The recent high of $3,385 serves as a critical level; a decisive break above this could propel gold prices toward the next resistance near $3,393, the high reached on June 23. On the downside, support lies at the $3,365 horizontal mark, with another key level at the 100-SMA on the 4-hour chart, around $3,349, which traders will be watching closely.

Special Analysis by Omanet | Navigate Oman’s Market

The recent bullish momentum in gold prices, driven by anticipated US interest rate cuts and ongoing economic uncertainties, signals a strategic opportunity for Omani investors and businesses to diversify into safe-haven assets. With gold hovering near multi-week highs, entrepreneurs in the UAE and Oman should consider increasing exposure to precious metals, while monitoring key technical levels to optimize entry points. This trend also underscores a potential risk for sectors sensitive to interest rate fluctuations, emphasizing the need for forward-looking risk management and agile investment strategies.