Gold prices come down in Oman

Energy Saturday 03/December/2016 20:24 PM
By: Times News Service
Gold prices come down in Oman

Muscat: Price of gold is dropping, as 24C gold in Oman is now OMR1.8 per gram less expensive than it was in October.
Rajesh Govindan, country manager, Liali Jewellery in Oman, said the price of 21C gold was OMR14.65 per gram on Thursday. “But earlier it was OMR16.2 per gram,” he told Times of Oman.
Experts attribute this drop in price to numerous events, such as the US presidential elections and a possible rate hike by the US Federal Reserve Bank.
“Following the US elections, the US dollar rose high, causing gold prices to fall significantly,” a financial expert noted.
He also said gold prices are now trading at among the lowest in 2016. “The highest price reached was OMR16.9 in Oman in 2016,” Rajesh Govindan pointed out.
In August 2011, the price of gold reached OMR21 per gram. “So considering the 2001 price, prices came down drastically,” noted Anup Kumar, an Indian expat who regularly buys gold.
There were mixed reactions among jewellers regarding the footfalls at their stores after gold prices dropped significantly in Oman.
While some say that sales have increased considerably, others note that customers are still waiting to buy, as they believe that prices will drop further.
Rush for gold
Jewellery shops managers in Ruwi, however, said they have witnessed a rush to purchase since the price of gold began falling. “We are seeing around 15 to 20 per cent more people now, as people continue to invest in the metal,since it is easy to sell with gains during emergencies,” confirmed a jewellery store official in Muscat.
Meanwhile, Govindan of Liali Jewellery said public expect the price of gold to go down further, so it is a wait-and-watch situation for many people.
“We expect the price will go down further, so I have decided to wait for a couple of more weeks before I buy some gold,” said Kumar, an Indian expat.
Some jewellery shops have been taking advantage of low prices by stocking up on ornaments, as well as gold bars and coins.
“The trend is directly related to the fall in gold prices and opportunistic buying. It’s mostly light-weight Indian jewellery, along with gold bars and coins, which are selling fast,” said Suresh, who runs a jewellery shop on Ruwi High Street.
However, all jewellers are upbeat that demand is likely to go up significantly once Indian schools closes for winter vacation
in Oman.
“Then, a lot of people will go for their annual holidays and we expect them to buy gold before they leave for India, as prices have dropped significantly over the last few weeks,” the jewellers said.