Despite gold prices reaching record highs, jewellery stores across Oman, especially on Ruwi High Street, are experiencing a surge in footfall, signalling resilient consumer interest in the yellow metal.
On Wednesday, global gold prices soared to an all-time high of $3,318 per ounce, reflecting investor anxiety amid escalating trade tensions between the US and China. In Oman, 24K gold was priced at RO 41.600 per gramme, and 22K gold at RO 38.900, marking a significant rise of over 2.6 per cent in a single day.
Gold prices have more than doubled in the past five years, climbing nearly twelvefold compared to levels in 2005. The recent spike followed US President Donald Trump's announcement of reciprocal tariffs on over 180 countries, triggering concerns that further fuelled gold’s ascent.
“Prices are up more than 22 per cent this year. We expect gold's rally to extend into next year, stabilising at even higher levels,” noted UBS analysts, predicting prices could reach $3,500/oz in 2025.
Despite market volatility, jewellers in Oman are seeing steady demand. “More people are buying gold fearing further price hikes. Though affordability is a concern, customers are rushing to buy before prices climb higher,” said Riyas from SeaPearls Jewellery.
According to Jagajith Prabhakar, MD of Cochin Gold, price fluctuations have made customers more cautious. “Volatility creates hesitation, especially for retail buyers and investors waiting for a clearer trend.”
Oman’s gold trade has shown robust growth, with imports rising 17.4 per cent to RO 372 million by November 2024, compared to RO 316.9 million during the same period in 2023, as per preliminary data from the National Centre for Statistics and Information (NCSI). The UAE accounted for the majority of imports (92.1 per cent).
Gold exports jumped 77.7 per cent to RO 63.2 million, and re-exports skyrocketed to RO 147.3 million - a staggering 800 per cent increase over the previous year. Iran emerged as the top re-export destination, followed by the UAE, Türkiye and the United States.
Average gold prices in Oman were recorded as:
24K: RO 30.4, 21K: RO 26.3 and 18K: RO 22.4
Oman is home to 931 licensed gold and diamond businesses, including 785 retail outlets, 45 repair shops, 90 manufacturers, and several metal crafting units, showing the strength of the country's jewellery sector despite market fluctuations.
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