Gold prices hit record high ahead of Diwali

Muscat: Gold prices jumped 250 baisas per gram in early trade in Muscat on the first trading day of the week to reach a new high.

At 2pm Oman time on Monday, 24K rose to OMR34.65 per gram compared to OMR33.75 per gram on last Monday (14 October).

Among the other variants, 22K, 21K and 18K surged to OMR32.55, OMR29.95 per gram, and OMR 25.550 per gram, respectively.

The recent rise in gold prices is driven by various factors, including escalating tensions in the Middle East and the tightening United States election race on November 5. In addition — Diwali, Dhanteras, and the wedding season have also heightened the demand for gold.

Dhanteras is considered one of the most auspicious days of the year for buying gold as part of Hindu festivities for the Indians.

It is going to be celebrated on Tuesday, October 29 and Diwali on Saturday, October 31.

Jewellery shops in Oman expect that their sales will go up in Diwali despite the high prices of the yellow metal. “We are expecting 10 to 15 per cent more sales than any other normal day,” one of them said. 

Najeeb K, Regional Head, Malabar Gold said: “Malabar Gold & Diamonds has unveiled a range of exception offers and exclusive jewellery as part of the festive season. Customers purchasing gold and diamond jewellery from any of our showrooms across Oman will be eligible for a free gold coin on their purchase. Additionally, 24k gold bars and 8g gold coins can be purchased without making charges. Special buy counters offering selected jewellery at incredible discounts have also been setup across our showrooms. All offers are valid in the Oman until 2 November.”

He also said, “The Festive Edition jewellery collection that we have unveiled is another major highlight of our Diwali offerings; a handpicked collection of Gold, Diamond & Precious Gem jewellery across our numerous exclusive brands, these pieces will be the perfect adornment to elevate our customer’s festive looks.”

He continued, “While the recent price hikes have been a cause of concern amongst jewellery buyers, we are confident that they will grow accustomed to the prevailing prices, especially when you consider the jewellery buying trend associated with the festive season. Our ‘Pay 10% Advance’ offer, introduced ahead of the festive season, has been a game-changer for customers navigating this period of price volatility. By paying just 10% upfront, customers have the advantage of locking in the current rate till, ensuring they secure the best price no matter how the market fluctuates. This initiative has safeguarded our sales from price hikes, with customers flocking to our showrooms to explore our collections and take advantage of our valuable offer.”

Other jewellers at Ruwi High Street also confirmed that they will keep their shops open till late night this weekend. “We will remain open till midnight, as we are expecting a brisk in sales,” they said.

Dhanteras, the first day of Diwali, is considered an auspicious time to buy jewellery and clothing.