Oman gold buyers face record prices ahead of Indian festive season

01/10/2025 06:27 AST

Gold prices in Oman have surged to fresh record highs, with 24K gold reaching OMR 48.80 per gram and 22K gold climbing to OMR 45.55 per gram on Tuesday afternoon.

The sharp rise marks a significant jump from early August, when 24K gold was priced at OMR 41.65 per gram. Globally, bullion has gained 11.4% so far in September, on track for its best month since August 2011. Spot gold rose 1% to $3,869.75 per ounce, while U.S. gold futures for December delivery added 0.4% to $3,872.

The surge has left many consumers and investors debating whether to buy now - ahead of the Indian festival of Diwali and year-end weddings - or wait for a possible correction. Dhanteras, the first day of Diwali festival, is considered an auspicious time to buy jewellery.

Mohammed Suleiman Chaki, manager of Al Haseena Jewellery in Ruwi, said: "Festive demand is one of the reasons gold prices remain firm. In India, the season begins with Navratri and continues through Dhanteras and Diwali, when buying gold is considered auspicious. Families often purchase jewellery or coins during this period, driving demand higher."

Another jeweller added: "While the recent spike has caused some concern among jewellery buyers, we expect people to adjust to the new price levels, especially given the cultural significance of gold purchases during the Indian festive season."

Other precious metals showed mixed trends: spot silver was steady at $46.95 per ounce, platinum eased 0.2% to $1,597.58, and palladium slipped 0.8% to $1,259.02.

Analysts attribute the rally to a combination of factors, including fears of a potential U.S. government shutdown, expectations of further U.S. interest rate cuts, a weaker dollar, and safe-haven demand amid ongoing geopolitical uncertainties. Steady inflows into gold-backed exchange-traded funds (ETFs) have further supported the upward momentum.

With momentum building, analysts suggest that 24K gold could touch OMR 50 per gram later this year if current trends continue. While short-term dips are possible, most experts maintain that gold's long-term trajectory remains firmly upward.

Times of Oman