Gold Prices Near Record Highs: What This Means for Investors and Businesses in Oman
Gold and silver continue their bullish trends for the fourth consecutive session, gaining 0.14% and 0.19% respectively on Friday, buoyed by the Federal Reserve’s recent rate cut, according to a report from Century Financial.
Gold Prices in Oman:
- 24k: OMR 54.100
- 22k: OMR 50.500
- 18k: OMR 40.200
Globally, gold prices hovered around $4,285 per ounce after rising 1.2% on Thursday. Silver traded just below $64, following a 3.08% jump. The current low interest rate environment supports precious metals like gold and silver, as they do not yield interest.
Gold has enjoyed a remarkable year, surging 62%, driven by several factors. Purchases by central banks and a trend toward de-dollarization have underpinned strong demand. Geopolitical tensions across multiple continents have added a risk premium, while institutional inflows into Exchange-Traded Funds have reversed years of outflows, providing additional support.
Technical analysis on the 4-hour gold chart reveals a bull flag pattern after a significant breakout. The price is consolidating near $4,282.83, with key support between $4,240 and $4,260, and resistance around $4,300 to $4,320. A rise above $4,300 would signal a continuation of the upward trend, whereas falling below $4,200 could trigger a minor correction.
Silver’s momentum also remains strong on the 4-hour chart, having broken major resistance levels and now trading near $63.76. It is forming higher highs and lows, with solid support between $62.50 and $62.80. Intraday support levels are noted at $64.50 to $65.00.
Crude Oil Update:
Oil prices slipped to their lowest in nearly two months on concerns about a supply glut but recovered some ground in early Friday trading. This modest rebound is attributed mainly to broader market optimism and increased risk appetite.
With the year-end approaching, markets are celebrating the December rate cut and a positive outlook for the U.S. economy in 2026. However, the oil market faces the prospect of even greater oversupply in 2026 than previously anticipated, which is expected to limit price gains even amid short-term geopolitical tensions, such as those between Russia and Ukraine.
Additionally, heightened enforcement by the Trump administration, exemplified by the seizure of a Venezuelan tanker, has dampened demand sentiment. This move threatens approximately 30% of Venezuela’s exports if sanctions enforcement continues. Meanwhile, production is rising in Brazil after recent disruptions, with strong output also coming from the U.S., Guyana, Canada, and Argentina.
West Texas Intermediate (WTI) crude is up 0.18% at $58 per barrel, with immediate support at $57.59, aligning with lows seen in early October and late November. Further support stands at $56.97, while resistance at the 50-day simple moving average (SMA) is at $59.28.
Brent crude is up 0.16% at $61.71, supported at $61.27 and $60.40, with 50-SMA resistance at $63.03.
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Special Analysis by Omanet | Navigate Oman’s Market
The sustained bullish momentum in gold and silver, supported by the Fed’s rate cut and geopolitical tensions, presents a lucrative opportunity for investors and businesses in Oman to diversify portfolios and hedge against currency risks. However, the looming supply glut in crude oil and geopolitical uncertainties around Venezuelan exports highlight potential risks for Oman’s energy sector, signaling the need for cautious strategic planning. Smart investors should monitor precious metals closely for further gains while preparing for volatility in oil markets driven by oversupply and regulatory enforcement.
