Notably, Europe appears poised to embark on a massive fiscal expansion, making it an increasingly attractive destination for investment, according to Ole Hansen, Head of Commodity Strategy, Saxo Bank.
Gold Prices in Oman Today
24k - RO36.9
22k - RO34.6
18k- RO27.2
Meanwhile, a series of tepid economic reports and the newly implemented US tariffs against major trading partners continue to stress Wall Street. In recent sessions, stocks, bond yields, and the dollar have all moved lower, while gold has climbed higher. The yellow metal, following another relatively shallow correction that failed to challenge key support levels, has resumed its ascent and is now trading back above $2,900, with traders once again setting their sights on the psychologically significant $3,000 level.
Beyond geopolitical tensions and the potential breakdown of a world order that has prevailed for generations, traders and investors are also reacting to a sharp and sudden deterioration in US economic data. This has led to increased pricing of stagflation risk—a period characterised by lower growth, rising unemployment, and increasing inflation. Forward-looking indicators suggest these developments could materialise in the coming months.
With that in mind, the outlook for gold remains supportive, particularly given the limited depth of the latest correction, which signals strong demand despite selling pressure from technically focused traders. In addition to diversification and safe-haven demand, gold will likely continue to benefit from central bank buying and fiscal debt concerns—persist. With the dollar showing signs of rolling over, another key level of inertia for gold may soon crumble as well, while the risk of an economic slowdown has lifted the expected number of 25 basis-point rate cuts this year to more than three from a January low of just one cut.
Spot gold trades up 11% year-to-date, with the one-year gain approaching 38%, and while we are acutely aware that nothing ever goes in a straight line—perhaps apart from Trump’s crypto pump and dump—we maintain our recently raised target of $3,300.
During the latest correction attempt, gold managed to bounce before reaching a 0.382 Fibonacci retracement at $2,813, let alone the 2024 peak at $2,790.
"Investors must have filled their bathtub by now (with gold)" is a comment I often hear, and while momentum and price strength have supported buying, activity across the exchange-traded funds and the COMEX futures market paints a different picture.
While demand for bullion-backed ETFs has risen in the past month, total holdings at 85.8 million ounces remain well below the recent 2022 peak of 107 million.
Leveraged speculators in the futures, meanwhile, have recently been net sellers, and in the week to 25 February, they held a net long of 26.7 million ounces, within the range seen during the last ten months.
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