Muscat – Gold prices in Oman have surged to unprecedented levels in recent weeks, mirroring global trends and unsettling buyers ahead of the wedding season.

International prices touched an all-time high of US$4,338/ounce (RO1,668) in October, pushing the local price of gold to record highs. Traders say the rally is driven by global economic uncertainty, a softer US dollar and strong demand from central banks, particularly in Asia.

“Prices have climbed mainly due to international demand, especially from China, which has reportedly bought more than 2,300 tonnes this year,” said Abdulrahman bin Abdulhamid al Saigh, owner of Adam’s Sons Jewellery in Muscat.

He said customers are selling old gold to take advantage of the high prices with plans to repurchase later. “But that’s not guaranteed. As long as global pressures remain, prices are unlikely to fall substantially,” he said.

Gold prices in Oman have nearly doubled in less than two years – from RO22/g at the end of 2023 to RO45 currently. Analysts forecast prices could reach RO61/g by 2026 if current trends hold.

The sharp rise has dampened jewellery sales. “With the wedding season approaching, couples are cutting back on the weight of their jewellery or reusing old pieces,” said jeweller Saeed al Hosni.

He described Oman’s gold market as highly responsive to global developments as the rial is pegged to the US dollar. “Any economic change or geopolitical tension quickly affects prices here.”

Households are also reconsidering spending. Sabriya al Balushi, a homemaker from Amerat, said she has reduced her gold purchases. “Families are focusing on essentials now. But gold still feels like a safe investment,” she said.

Some investors see opportunity in the volatility. Talal al Amri said he bought more gold during a recent dip. “Gold remains more reliable than many other financial assets,” he said.

Hosni attributed a recent slight fall in prices to a “natural correction” after weeks of gains. “It’s just profit-taking and a temporary strengthening of the dollar. Overall, the long-term direction remains upward.”

He added that labour charges differ between shops, depending on craftsmanship and design. “Modern, detailed designs require more time and skill, which naturally increases costs.” 

Experts advise buyers to monitor global market trends and keep transaction records. 

“Despite the challenges, gold continues to shine as a hedge against uncertainty. Reading the market correctly is key,” Hosni said.