Rising Gold Prices in Oman Cripple Sales

The continuous rise in gold prices since the beginning of this year has significantly affected gold businesses in Oman.

The owner of a gold shop in Muttrah Souq reported that the price of gold per gram has increased from 22 Omani Rials at the start of 2024 to 27 Omani Rials. He attributed this rise to geopolitical conditions and financial market fluctuations, which have negatively impacted purchases, even during the wedding season.

This shop owner added that some customers are now opting for silver and gold-plated jewelry, leading to a 30% decline in gold sales over the past few months.

Another gold trader pointed out other factors such as value-added tax, price manipulation, and unlicensed gold workshops, which have also contributed to the decrease in demand for gold. He predicted that the price of gold might continue to rise and reach 30 Omani Rials per gram.

A regular gold buyer mentioned that since 2005, the price of gold has steadily increased, leading to a decline in purchases due to lower individual incomes and taxes on gold purchases.

Mansour Al-Yaarabi, a senior technician at the Precious Metals Laboratory of the Ministry of Commerce, Industry, and Investment Promotion, emphasized that significant efforts are being made to monitor the quality and pricing of gold. Inspection campaigns ensure the quality of jewelry with mandatory stamps and seals indicating the type and quality of gold.

Source: Rising Gold Prices in Oman Cripple Sales (muscatdaily.com)