Gold prices in Oman dip 27% from January peak

Times News Service

Muscat: After scaling record highs earlier this year, gold prices in Oman have fallen sharply, offering welcome relief to jewellery buyers and investors.

The price of 24-carat gold, which reached OMR70.2 per gram on January 29, has dropped to around OMR 51.3 per gram on Tuesday—a decline of OMR19, or nearly 27 per cent.

The January price marked the highest retail level recorded in Oman in recent months.

The correction follows months of volatility in international bullion markets, where gold surged on geopolitical tensions, strong central bank buying and safe-haven demand before easing as investor sentiment improved and expectations surrounding global interest rates shifted.

For consumers in Oman, the decline translates into substantial savings.

“A 10-gram purchase of 24-carat gold now costs roughly OMR 513, compared with OMR702 at the January peak—a saving of about OMR 190,” said Mohammed, manager of Al Haseena Jewellery.

Jewellers say lower prices are already encouraging more customers to return to the market after many postponed purchases during the price rally. “The drop in prices is expected to boost demand for jewellery, particularly for weddings, gifts and investment,” a jeweller on Ruwi High Street said. International gold prices also remained under pressure on Tuesday, weighed down by easing geopolitical concerns and changing expectations over the US Federal Reserve’s interest rate outlook.

Analysts said investors were increasingly shifting towards riskier assets, reducing demand for gold as a safe-haven investment.

Despite the recent correction, analysts note that gold prices remain significantly higher than they were a year ago, reflecting continued uncertainty in the global economy.

Market experts say future price movements will depend on several factors, including US interest rate decisions, inflation trends, the strength of the US dollar and geopolitical developments.

While the current decline has made gold more affordable than it was at the beginning of the year.