Gold Prices Surge Over 17% in 2026: What This Means for Investors and Businesses in Oman
Bengaluru: Gold prices surged further on Wednesday, building on the previous session’s largest daily increase in 17 years, as investors sought refuge amid escalating geopolitical tensions between the U.S. and Iran.
Spot gold rose by 2.4% to $5,057.50 per ounce as of 0945 GMT, following a substantial 5.9% gain on Tuesday. Meanwhile, U.S. gold futures for April delivery climbed 3%, reaching $5,080.90 per ounce.
Nitesh Shah, commodities strategist at WisdomTree, attributed the demand to “a confluence of risk factors,” highlighting concerns over central bank independence alongside geopolitical uncertainties.
The U.S. military reported on Tuesday that it had shot down an Iranian drone that aggressively approached the Abraham Lincoln aircraft carrier in the Arabian Sea. This incident occurred amidst ongoing diplomatic efforts to arrange nuclear talks between Iran and the United States.
Concurrently, U.S. President Donald Trump intensified scrutiny of Federal Reserve Chair Jerome Powell by calling for the completion of an investigation, raising fresh doubts about the Fed’s autonomy.
Gold is recovering after dropping to $4,403.24 on Monday, extending losses from Friday in the sharpest two-day sell-off in decades—triggered by Trump’s nomination of Kevin Warsh to lead the Fed and compounded by CME margin increases. Despite recent volatility, gold remains up over 17% for the year.
Investors are closely watching the ADP private payrolls report, due later Wednesday, for insight into the Federal Reserve’s policy trajectory. Markets currently anticipate at least two rate cuts in 2026.
UBS analyst Giovanni Staunovo projected, “With the Fed still expected to cut further rates this year, this should allow gold to reach $6,200 per ounce later this year.”
Bullion, which does not yield interest, typically performs well in low-interest-rate environments.
In other metals, spot silver advanced 4.5% to $88.90 per ounce on Wednesday, rebounding from a month-low of $71.33 hit on Monday after reaching a record high of $121.64 last Thursday. Spot platinum increased 3.4% to $2,284.71 per ounce, and palladium rose 4.9% to $1,818.25.
Special Analysis by Omanet | Navigate Oman’s Market
The surging gold prices amid geopolitical tensions and potential Federal Reserve rate cuts signal heightened economic uncertainty and a flight to safe-haven assets. For businesses in Oman, especially those linked to commodities and investment sectors, this presents an opportunity to hedge against volatility while attracting investors seeking stability. Smart entrepreneurs should consider diversifying portfolios into precious metals and related industries, leveraging the expected continued upward trajectory of gold and silver prices in 2026.
