Rush expected for gold in Oman shops as prices dip

Muscat: Consumers in Oman are expected to flock to gold shops as prices fell to a 10-month low on account of interest rate hike by the United States Federal Reserve.
Gold was sold on Friday at OMR436.77 per ounce while 24 Karat and 18 Karat gold was priced at OMR14.04 and OMR10.53, respectively, reflecting more than seven per cent drop in prices since last month. Sellers anticipate increased sales towards the end of the year.
P.A. Riyas, General Manager of Sea Pearls Oman, said consumers are expected to invest in gold due to reduced prices.
“Gold will always be seen as an ideal investment in comparison to other options and can be easily re-sold. In addition, it does not witness depreciation in an uncertain economy. Consequently, we expect an increase in customer flow due to this drop in gold prices,” said Nicholas Nitin Abraham, marketing executive at Malabar Gold and Jewellery.
The yellow metal has seen rising demand in 2016 as investors perceive it as a safe haven for investment when weighed against risk assets like stocks and other commodities, both of which have been adversely affected by drop in oil prices.
“Gold is considered one of the best ways to invest and hence, I would expect an increase in the number of customers with the fall in gold prices. The first quarter of 2017 will see certain specific occasions as well, and that will add to an increase in buying,” he said.
Sale of gold items has faced a challenging scenario in Oman since 2014 and while experts are unable to predict future prices, they are confident that gold will be an ideal investment for people in 2017.
“We had an excellent year in terms of sales in 2016 when compared to 2015 and,although we have no control over the prices, we are expecting rise in sales to continue even next year,” Abraham said.
Price per ounce dropped nearly three per cent by $34 to $1,130.80 on Thursday, following US Fed’s announcement to hike interest rate before gaining $7 on Friday to close the week at $1,137.50,
15 per cent
Gold prices globally have fallen by nearly 15 per cent in the last six months and increase in oil prices followed by hike in interest rates continue to portray a bleak outlook of the gold market in terms of prices, making it an ideal investment as prices bottom out.