Gold Prices Reach New Record High in GCC: What Investors and Businesses Need to Know
Gold prices in the Sultanate of Oman have reached unprecedented levels, with 22-karat gold priced at RO44.9 per gram and 24-karat gold approaching RO48.1 per gram. Meanwhile, 21-karat gold stands at RO42.3 per gram.
In neighboring markets, gold prices are similarly high. In the UAE, the rates are AED 458.08 per gram for 24-karat, AED 419.91 for 22-karat, and AED 343.56 for 18-karat gold. Saudi Arabia reports a price of SAR 459.21 per gram.
Gold continues to demonstrate strong momentum, closing 0.28% higher on Friday and surging 1.48% in the Asian session on Monday, according to Vijay Valecha, Chief Investment Officer at Century Financial. The price of gold has now surpassed the $3,800 mark, setting yet another record high for the year.
This rally is largely driven by increased expectations of further interest rate cuts later in the year. The Federal Reserve’s preferred inflation measure, the Core PCE Price Index, met expectations at 2.9% last Friday, bolstering these hopes. Additional factors supporting gold’s safe-haven appeal include renewed trade tensions from a fresh wave of tariffs imposed by former President Donald Trump on imports such as pharmaceuticals, trucks, and furniture, alongside concerns over a potential US government shutdown.
Market attention this week is focused on upcoming speeches by Federal Reserve officials and the highly anticipated non-farm payrolls report on Friday, both key influences on gold prices in the near term.
Technically, gold prices have surpassed the previous all-time high of $3,791.25, recorded on September 23, and are currently trading near $3,815, reinforcing a bullish outlook in the short term. On the 4-hour chart, a bull flag pattern and breakout are evident, with prices breaking out during Friday’s latter session. Despite this positive momentum, the Relative Strength Index (RSI) is in the overbought zone on both daily and 4-hour charts, suggesting possible consolidation or a slight pullback to the $3,791 breakout level.
The surge in gold prices is primarily fueled by global economic uncertainties and geopolitical tensions, which have increased investor demand for safe-haven assets. A weakening US dollar and inflation concerns have further amplified this upward trend worldwide.
Market apprehension is also rising over a potential US government shutdown this week, as political leaders face a looming Tuesday deadline to secure a funding agreement. Failure to do so could impact key departments, including the labor sector. Congressional leaders from both parties are scheduled to meet with President Trump to negotiate a resolution.
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The sharp rise in gold prices presents a lucrative opportunity for investors and jewelers in Oman to capitalize on heightened demand driven by global economic uncertainty and safe-haven buying. Businesses should consider leveraging this bullish trend by expanding gold-related offerings, while smart investors must remain vigilant of potential short-term consolidations amid overbought technical signals. As geopolitical and economic risks persist, gold remains a crucial asset for portfolio diversification in Oman’s evolving market landscape.
