Monday 15 / September / 2025
Gold prices have rallied significantly in 2025 and are increasing day by day, and the consumers are in a dilemma: should they buy now or wait?
Speaking to Times of Oman, R. Madhusoodanan, a financial expert based in Muscat, said that the price of the yellow metal has climbed by 40% year to date. One gram of 22-carat gold was at OMR27 during September 2024, and now it is over OMR43, a difference of OMR17 in just one year. The price of one troy ounce (31.103 grams) of gold is at $3,650 as of 15/09/2025. Gold appears bullish, and the rate may cross $3,800 in the short term and above $4,000 in 2026.
The gold prices have been rising ever since Donald Trump took office as President in January 2025. One troy ounce of gold at the start of the year was $2,655.
This rally has been fuelled by the uncertainties linked to the trade and tariff policies of the US administration and the heightened geopolitical tensions. The investing community has been shifting to gold, which is considered as a safe haven and a perfect hedge against rising inflation. Another reason attributed to the higher demand for gold is that Central Banks, across the world, are boosting their gold holdings as part of their foreign exchange reserve while cutting down their US dollar reserves.
Outlook
Key economic data released in the US last week, viz, unemployment, inflation, and growth, etc, came in weak. And as a result, pressure is mounting on the US Federal Reserve (FED) to cut the interest rate. It is expected that the FED may reduce the interest rates by 25 bps in the upcoming FOMC meeting scheduled for this week.
Typically, Fed rate cuts lead to higher gold prices as investors shift from their low-yielding investments to gold, which offers no yield but has huge capital appreciation potential. The weakness in the US economy may also encourage investors to accumulate gold, increasing demand and pushing prices higher.
Buy or wait
Gold’s price movements are influenced by multiple factors. It is a fact that the price of gold has significantly rallied in 2025, which has made many buyers hold off on their decision. For investors, it is suggested to keep investing at different levels. Buying physical gold requires higher amounts and ensuring purity and safekeeping are issues associated with that.
Instead, buy gold in digital forms (gold ETFs, digital platforms) with smaller amounts at regular intervals.
This approach will help you to average out the price of gold while accumulating gold over a period. Those opting to buy physical gold should buy 24-carat bars. In Oman, VAT of 5 per cent is not applicable for 24-carat gold.
That said, gold prices may ease if the current geopolitical tensions and uncertainties in global trade are settled. Then investors can diversify their investments to other high yielding markets by liquidating gold.
Nevertheless, as a long-term strategy, buy gold in digital form in small quantities regularly, regardless of the market price. Remember, “Gold remains the world’s top monetary asset,” R. Madhusoodanan said.
