Gold prices hit another record high in the GCC

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Gold prices in the Sultanate of Oman have surged to new levels, with 22-karat gold touching RO44.9 per gram and 24-karat gold inching towards the half-century mark at RO48.1 per gram. The 21-karat costs 42.3 per gram.

In the UAE, prices are 24 karat – AED 458.08, 22 karat – AED 419.91, and 18 karat – AED 343.56, while in Saudi Arabia, the price stood at SAR459.21 per gram.

Gold is continuing its show of strength with a 0.28% higher close on Friday, followed by a massive 1.48% rally during the Asian session on Monday, according to Vijay Valecha, Chief Investment Officer, Century Financial.

With this move, the bullion has now crossed the $3,800 level, marking yet another record high this year.

The rally is being driven by heightened odds of further interest rate cuts later this year, especially after the Fed’s preferred inflation metric, the Core PCE Price Index, came in line with expectations at 2.9% on Friday.

Additionally, increasing trade uncertainty from a fresh round of tariffs by Donald Trump on imported goods, such as drugs, trucks, and furniture, along with a risk of a US government shutdown, added to the safe-haven demand for the yellow metal.

All eyes will be on the numerous speeches from Federal Reserve officials scheduled throughout the week, along with the highly anticipated non-farm payrolls report on Friday, both key factors expected to influence Gold prices in the days ahead.

On a technical front, prices have broken above the previous all-time highs of $3,791.25 touched on 23rd September and are trading near the $3,815 level, reinforcing the bullish market structure for the short term.

On the 4-hour timeframe, a bull flag setup and a breakout can be seen, with prices breaking out of the setup during the second half of Friday’s session.

While the short-term outlook remains bullish, with the RSI trading in the overbought zone in both the daily and 4-hour charts, some consolidation or a slight pullback could be expected till the $3,791 breakout level.

The surge in gold prices is driven by global factors as investors are seeing gold as a safe-haven asset amid tensions and economic uncertainties.

The demand for gold has been fueled by a weakening US dollar and concerns over inflation, prompting a surge in gold prices worldwide.

There are market concerns over a possible government shutdown this week as US politicians struggle to reach a funding deal, with some analysts suggesting the labour department could be hit.

With a deadline for a deal coming on Tuesday, congressional leaders on both sides are due to meet with President Trump to try to resolve the issue.