Wednesday 18 / September / 2024
MUSCAT: Gold prices surged to all-time highs on Monday, driven by a weakening dollar and heightened expectations of a significant interest rate cut by the US Federal Reserve later this week.
In Oman, retail gold prices soared, with 24kt gold selling at OMR32.80 per gram and 22kt at OMR30.80 by the evening.
On the global market, gold was trading at US$2,586.23 per ounce earlier in the day, after briefly hitting a record-breaking US$2,588.81 during the morning session. US gold futures also edged up 0.1% to US$2,613.40.
The dollar weakened by 0.2%, making gold more affordable for investors holding other currencies, and further driving demand for the precious metal.
Gold has seen a sharp rise, fueled by multiple factors including expectations of a Federal Reserve interest rate cut, ongoing geopolitical uncertainties, and the dollar’s decline.
A prominent gold merchant in Ruwi commented on the price surge, noting that investor sentiment is strongly tied to the anticipated interest rate cut.
He said, “As a safe-haven asset, gold typically moves in the opposite direction of interest rates. The expectation of a rate cut has become a significant driver of higher gold prices. Additionally, a weaker US dollar makes gold more attractive to international buyers, further pushing prices upward.”
The combination of global economic factors continues to make gold an appealing choice for investors seeking security amidst market volatility. With further developments expected from the Federal Reserve, the upward trajectory of gold may yet continue.
