Gold Prices Edge Up as Dollar Weakens: What Investors and Businesses in Oman Should Know
Bengaluru: Gold prices inched higher on Thursday amid rising uncertainty over U.S. tariff policies, which reinforced the metal’s appeal as a safe-haven asset. Investors remained on edge ahead of anticipated updates on U.S.-Iran nuclear negotiations scheduled for later in the day.
As of 1144 GMT, spot gold increased by 0.1% to $5,174.07 per ounce, following a peak not seen for more than three weeks on Tuesday. Contrarily, U.S. gold futures for April delivery dipped by 0.7%, settling at $5,190.30.
The U.S. dollar weakened, enhancing the affordability of dollar-denominated commodities for buyers using other currencies. Carlo Alberto De Casa, an external analyst at Swissquote, highlighted the ongoing U.S.-Iran tensions alongside economic uncertainties prompted by President Donald Trump’s tariff plans as bullish factors driving gold demand.
Diplomatic efforts continue in Geneva, where U.S. envoy Steve Witkoff and Trump’s son-in-law Jared Kushner are set to engage with an Iranian delegation for a third round of nuclear talks. President Trump, in his recent State of the Union address, reiterated his firm stance against allowing Iran—labelled by him as the world’s foremost state sponsor of terrorism—to acquire nuclear weapons.
Gold, a non-yielding asset, is traditionally viewed as a secure value reserve during periods of geopolitical and economic instability. Meanwhile, U.S. Trade Representative Jamieson Greer announced that tariff rates on certain countries will rise to 15% or more from the current 10%, although specific nations and additional details were not disclosed.
Gold hit a historic high of $5,594.82 per ounce on January 29 and has surged approximately 20% year-to-date. De Casa remarked, “The global gold rush does not seem to be over… Overall, sentiment remains positive with strong buying demand from Asia and central banks.”
Market participants also awaited weekly U.S. jobless claims data due later in the day.
In contrast to gold’s gains, spot silver declined 2.1% to $87.52 per ounce. Spot platinum and palladium also experienced losses, sliding 0.5% to $2,275.65 and $1,785.79 per ounce, respectively.
— Reuters
Special Analysis by Omanet | Navigate Oman’s Market
The recent rise in gold prices amid U.S.-Iran tensions and tariff uncertainties highlights gold’s role as a safe-haven asset in times of geopolitical and economic instability. For businesses in Oman, this signals potential opportunities in sectors related to precious metals and investment diversification. Smart investors should consider gold as a strategic hedge against currency fluctuations and global market volatility, while entrepreneurs might explore ventures linked to precious metals trading or refining.
