Muscat: Gold traders and shop owners in Oman have reported a troubling decline in sales due to a sharp increase in gold prices this year. The price of a gram of gold, excluding workmanship, has risen from around RO 22 at the start of 2024 to RO 27 currently. This increase has been attributed to a mix of geopolitical uncertainties and financial market fluctuations.
Mohammed Amin bin Adam Al Sayegh, a gold shop owner in Muttrah Souq, highlighted that the surge in global gold prices is largely due to volatile geopolitical conditions and market speculations. Despite the wedding season kicking off two months ago, the high prices have dampened purchasing activity, with a notable 30 per cent drop in gold sales reported over recent months.
Sadiq Bin Dawood Al-Sayegh explained that the price hikes are influenced by market speculation, regional instability, and price manipulation by commercial investors. He also pointed to additional factors like value-added tax and unlicensed gold workshops affecting demand. Al-Sayegh predicts that prices could climb further, potentially reaching RO 30 per gram, likely exacerbating the financial strain on gold shop owners.
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Gold merchant Qais bin Abdul Hamid Al-Sayegh noted a temporary boost in sales as people rushed to buy gold for immediate needs or to cover obligations before prices rose further. However, the ongoing price escalation pushes shop owners to consider diversifying into other sectors to mitigate losses.
Consumers like Khalifa bin Abdullah Al-Mandhari and Umm Yazan Al-Ameriyyah expressed frustration with the high prices and reduced purchasing power, attributing the decline in gold purchases to economic constraints and perceived quality issues.
To address quality and price integrity concerns, Mansour bin Rashid Al Ya’arubi from the Precious Metals Laboratory at the Ministry of Commerce emphasized ongoing efforts to monitor gold markets and workshops. The Directorate conducts regular inspections to ensure compliance with quality standards and accurate pricing, aiming to protect consumers and uphold market integrity.
