Rising Gold Prices in Oman: Implications for Investors and Business Owners as 22-Karat Gold Surpasses RO60
Muscat: Gold prices continue to surge globally, including in the Sultanate of Oman. A prominent jewelry retailer in Oman reported that the price of 22-karat gold exceeded the RO60 mark on Monday, closing at RO60.200. On Tuesday morning, it was trading at RO60, while 24-karat gold was priced at RO64.250 and 18-karat gold at RO47.400.
For the first time, gold has surpassed $5,000 and may reach $6,000 by year-end, according to an independent financial advisory firm. Nigel Green, CEO of deVere Group, stated that this significant increase indicates a major shift in how global investors assess political risk, debt, and currency stability. “Gold’s rise above $5,000 reflects a deep reassessment of global power, policy, and capital,” he remarked, noting that investors are seeking certainty as traditional investments appear increasingly fragile.
The surge in gold prices occurs amid rising geopolitical tensions and changes in policy since Donald Trump’s return to the U.S. presidency. His administration’s stringent approach to trade, defense, and alliances has altered global expectations, leading to volatility in currency and government bond markets. Green emphasized that “markets price stability,” and the current policy climate introduces unpredictability that drives investment toward hard assets like gold. He noted that “gold thrives when political signals create uncertainty about growth, inflation, and international cooperation.”
Additionally, rising concerns about government borrowing contribute to this trend. Debt levels are escalating in major economies, with fiscal expansion becoming a dominant political strategy. Investors are increasingly doubtful about bonds’ ability to preserve purchasing power in such conditions. Green pointed out that gold is responding to an ongoing debt supercycle. “When governments rely heavily on borrowing, investors seek to hedge against currency devaluation and long-term inflation,” he stated, highlighting gold’s historical role as a store of value during times of uncertainty in debt markets.
Central banks have also fueled this rally by consistently accumulating gold, with official sector purchases exceeding a thousand tonnes annually. This trend reflects a strategic pivot by countries diversifying reserves away from the dollar and euro. “Central banks are voting with their balance sheets, signaling a shift toward assets outside the Western currency system,” explained Green.
Private investors have followed suit, with increased allocations in exchange-traded funds, institutional portfolios, and retail purchases amid rising macroeconomic uncertainty. “This alignment between central banks and private capital creates powerful momentum,” Green noted. “When both market sectors invest for structural reasons, price movements become self-reinforcing.”
He concluded that “gold serves as the market’s trust barometer.” The magnitude of this price shift indicates that investors are questioning the sustainability of current monetary and fiscal frameworks. The prevailing political and economic conditions, including rising living costs and geopolitical fragmentation, are reshaping investor behaviors and risk preferences.
Special Analysis by Omanet | Navigate Oman’s Market
The surge in gold prices in Oman indicates a significant shift in global investor sentiment, driven by rising geopolitical tensions and concerns over fiscal stability. This presents opportunities for businesses in the gold jewelry sector to capitalize on increased consumer demand, but also risks associated with market volatility. Smart investors should consider diversifying into hard assets like gold, as they can offer protection against inflation and currency debasement.
