Gold prices soared to another fresh record above $5,500 Thursday, after US President Donald Trump ramped up geopolitical tensions with his threatened military strike on Iran.
In Oman, 24-karat gold was trading at RO 70.050, 22-karat at RO 65.650, and 18-karat at RO 52.050.
Ongoing geopolitical uncertainty, a weaker dollar, and policy risks are driving demand for safe-haven assets. So far this year, gold is up over 21%, helped by a steep drop in the US dollar, which is now near four-year lows due to concerns about policy credibility and the future of US monetary leadership, according to Century Financial.
Strong demand continues to support gold prices, driven by steady central bank buying and an increasing number of investors opting for non-dollar assets. Although speculation has grown and short-term price drops are possible due to overbought conditions, the overall trend remains positive, Century Financial said.
India's gold demand is likely to fall in 2026 following a drop of 11% last year, as a surge in prices dampens jewellery sales and offsets an uptick in investment buying, the World Gold Council (WGC) said on Thursday.
Demand for gold could stand between 600 metric tons and 700 metric tons, compared to 710.9 tons last year, which was the lowest in five years, Sachin Jain, chief executive of the WGC's Indian operations, told Reuters.
Jewellery buyers prefer stable prices of Gold, but the volatile rising prices of recent months have far outstripped consumer budgets, Jain said."Inflow into exchange-traded funds(ETFs) will continue to grow," he said.
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