Retail gold jewellery prices in the Sultanate of Oman have been softening in line with the recent trends as globally the yellow metal has dropped more than 1.5 per cent to the lowest level since April 2020.
According to retailers, gold prices have dropped by nearly RO 1 per gram of 22 karats since the start of this month.
On Saturday, the retailers were trading gold at RO 20.30 for 22 karats and RO 21.10 for 24 karats. According to market sources.
For many reasons, gold prices have hit low as the US Federal Reserve adopted a tougher stance with the aim of curbing inflation, which has led to the strengthening of the dollar.
And gold fell in spot transactions by 1.6 per cent to $1,644.04 an ounce , after it fell by 1.8 per cent to $ 1,640.20 earlier.
Market analysts said that gold prices are likely to drop further at the international markets in the coming days in the backdrop of inflation, renewed geo-political risks surrounding the Russia-Ukraine war, while risk-averse sentiments can force people to take to bet on gold as a long-term safety net.
According to one gold retailer in the capital, “The currencies of South Asia have been also weakening against the dollar and even the Omani riyal, forcing them to take advantage of the situation and remit money back home. Also, many expatriate communities have just returned from summer vacation, which means there is a liquidity crunch to invest in gold now. If prices continue at current levels, we can expect some demand towards the start of the festival season in India.”
@vinot_nair
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