MUSCAT – Gold prices took a slight weekend tumble to OMR37.650 on Friday for 1gm, 22k. This rate is a far cry from the time the prices were heading the list at OMR40.200 on April 21 and OMR41.200 on April 22, the highest so far, this year, market watchers claim. Compared to those rates, the prices have dipped to a level that could make shoppers make a beeline to the souqs and gold shops here in town.
Conflict influence prices
“Gold price movements are dictated by several factors, including inflation rates, interest rates, taxation policies, local economic conditions, geopolitical events and broader economic trends,” market watchers note, adding that the ongoing Ukraine-Russia conflict has significantly influenced gold prices. In fact, a potential ceasefire could lead to a correction in gold prices, experts note.
“In fact, during the start of this year, the prices had shot down,” they said, adding that on January 1, 2025, the price was at a shopper’s delight of OMR31.4.
Market uncertaintyBut, the market uncertainty has prevented some shoppers from barging into gold shops here Other market trends, plus job uncertainties among the expatriate circle has also made many lose the glint and not risk take a shine at buying the yellow metal.
Dip can woo back clients
“Couple of rials, or even a rial dip can bring in new customers or woo back the old ones,” a gold shop sales source told Black & White. However, the market fluctuations do more harm than good, other sources add as it confuses the shoppers.
Shoppers back to the fold
But, January sales’ hike for many of the jewellers here had put them into a good mood, before the gold prices itself went up, peaking in April end and wiping off smiles of the gold sellers in town.
However, the current dip has brought shoppers back, especially during weekend sales, wooed more by this receding factor than just the perennial glint.
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