MUSCAT: Gold traders and shop owners in Oman have reported a decline in gold sales, attributing the trend to geopolitical and financial reasons. They noted that the ongoing rise in gold prices has significantly reduced purchasing activity, impacting sales of gold jewelry and imposing financial burdens on those in the trade.
Muhammad Amin bin Adam al Sayegh, a gold shop owner in Muttrah Souq, explained that the price of gold has surged from around RO 22 per gram at the start of 2024 to RO 27, despite the onset of the wedding season two months ago. He observed that many customers are now opting for silver and gold-plated jewelry instead, leading to a 30 per cent decline in gold sales this year.
Siddiq bin Dawood al Sayegh highlighted that market speculation, regional conditions, and the influence of commercial investors are driving the price increases. He also cited the value-added tax and price manipulation by unlicensed workshops as factors deterring gold purchases.
Looking ahead, he predicted further price hikes due to ongoing Middle East tensions and the upcoming US elections, potentially pushing gold prices to RO 30 per gram. This would further strain gold shop owners, causing financial losses.
Gold merchant Qais bin Abdul Hamid al Sayegh noted a recent uptick in gold sales driven by the price rise, as customers seek to fulfill obligations or await price drops. However, he warned that continuous price increases could force merchants to explore alternative economic sectors.
Khalifa bin Abdullah al Mandhari, a gold buyer, remarked that gold prices have been rising since 2005, now exceeding RO 27 per gram, with taxes further discouraging purchases.
Mansour bin Rashid al Ya'arubi from the Ministry of Commerce, Industry, and Investment Promotion emphasised ongoing efforts to monitor gold markets and ensure quality and price integrity, including regular inspections and verification of gold's authenticity and pricing. — ONA
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