Gold Prices Surge Past $5,500: What the RO65 Milestone for 22-Karat in Oman Means for Investors and Businesses
Gold prices surged to a new record above $5,500 on Thursday, following heightened geopolitical tensions triggered by US President Donald Trump’s threat of a military strike on Iran.
In Oman, gold was trading at RO 70.050 for 24-karat, RO 65.650 for 22-karat, and RO 52.050 for 18-karat.
The rise in gold prices is driven by ongoing geopolitical uncertainty, a weakening US dollar, and policy risks that have increased demand for safe-haven assets. This year, gold has gained over 21%, bolstered by a sharp decline in the US dollar, which is nearing four-year lows due to concerns about policy credibility and the future direction of US monetary policy, according to Century Financial.
Strong demand continues to underpin gold prices, supported by steady central bank purchases and a growing number of investors turning to non-dollar assets. While some short-term price corrections are possible amid overbought conditions, Century Financial maintains that the overall trend remains positive.
However, the World Gold Council (WGC) reported that India’s gold demand is expected to decline in 2026 after an 11% drop last year. This decrease is attributed to soaring prices, which have dampened jewellery sales despite a rise in investment buying.
Sachin Jain, CEO of the WGC’s Indian operations, told Reuters that gold demand in India could range between 600 and 700 metric tons in 2026, compared to 710.9 tons last year—the lowest in five years. He noted that jewellery buyers favor stable gold prices, but recent price volatility has surpassed consumer budgets. Jain also highlighted that inflows into gold exchange-traded funds (ETFs) are expected to continue growing.
Special Analysis by Omanet | Navigate Oman’s Market
The surge in gold prices amid geopolitical tensions and a weakening US dollar presents a prime opportunity for Oman’s investors and businesses to leverage gold as a safe-haven asset. However, the volatility and rising prices caution jewelry retailers to adapt strategies, possibly shifting focus toward investment-driven demand rather than traditional consumer buying. Smart investors should consider diversifying portfolios with gold ETFs and monitor geopolitical developments closely for timely market moves.
