The Sultanate of Oman has witnessed a decline in the sale of gold by about 30 percent due to a rise in its prices since the beginning of the year. Gold traders and shop owners in Oman have confirmed this trend attributing the rising prices to geopolitical conditions and financial market fluctuations. The rise in gold prices has led to a noticeable dip in purchasing activity in the gold markets in Oman, causing problems for traders and shop owners. The price of a gram of gold has increased from OMR22 to OMR27 per gram, leading some people to turn to buying silver or gold-plated jewellery instead of gold.
Muhammad Amin bin Adam Al-Sayegh, owner of a gold shop in Muttrah Souq, mentioned that the rise in prices is a result of speculation in the markets of producing and importing countries, as well as conditions in the Middle East region and the control of commercial investors over gold prices. Value-added tax, manipulation of prices, and the quality of gold by some owners of unlicensed workshops have also contributed to the lack of demand for gold. He predicts further price increases in the coming period due to the ongoing conditions in the Middle East region and the upcoming US elections, with the price of a gram of gold expected to reach OMR30.
Qais bin Abdul Hamid Al-Sayegh, a gold merchant, expressed concerns over the continuous rise in gold prices affecting shop owners, merchants, and buyers who may seek alternative investment opportunities. Khalifa bin Abdullah Al-Mandhari highlighted the challenges faced by gold markets in Oman, such as the low economic activity and the tax imposed on gold purchases, leading to a decline in overall gold purchases. Umm Yazan Al-Amri attributed the weak demand for gold to low individual incomes, general price increases, and fraudulent practices by some merchants and owners of unlicensed workshops.
Senior Laboratory Technician, Mansour bin Rashid Al Ya’arubi, emphasized the efforts being made by the General Directorate of Specifications and Standards at the Ministry of Commerce, Industry and Investment Promotion to monitor gold markets and workshops in Oman to prevent tampering with quality and prices. Continuous inspection campaigns are being carried out on gold shops and workshops to ensure the authenticity and quality of displayed jewellery. It is essential for consumers to verify the daily gold prices displayed on screens in shops along with the stamp and seal indicating the type and quality of gold to make informed purchases.
