Gold prices in Saudi Arabia fell again on Monday, February 16, influenced by the volatility in global gold markets. This decline comes as consumers and investors alike await market trends before making purchasing or investment decisions, particularly regarding 21-karat gold, the most popular and widely traded type in the Kingdom.
Gold prices in Saudi Arabia today
At the start of morning trading, gold prices recorded a noticeable decline compared to yesterday's closing prices, and the figures were as follows:
- The price of a gram of 24-karat gold reached 602.25 Saudi Riyals, compared to 608 Riyals yesterday.
- The price of a gram of 22-karat gold has decreased to 552 riyals, after it was 557.25 riyals.
- The price of a gram of 21-karat gold: recorded 527 riyals, compared to 532 riyals at yesterday's close.
- The price of a gram of 18-karat gold reached 451.75 riyals, compared to 456 riyals.
- The price of a gram of 14-karat gold reached 351.25 riyals.
- The price of a gram of 12-karat gold: recorded 301 riyals.
Prices for other weights were also updated, with the price of an ounce of gold recording 18,731.25 riyals, while the price of a gold pound reached 4,215.5 riyals.
General context and impact of global markets
Gold has historically been considered a safe haven for investors worldwide, who turn to it as a hedge against inflation, economic instability, and geopolitical turmoil. However, its price is closely tied to several global factors, most notably the performance of the US dollar and the policies of major central banks, particularly the US Federal Reserve. There is generally an inverse relationship between the strength of the dollar and the price of gold; the stronger the dollar, the lower the price of gold, and vice versa. Furthermore, interest rate hikes make investing in income-generating assets (such as bonds) more attractive than gold, which does not offer a direct return, potentially putting downward pressure on its price.
The importance of the event and its impact on the Saudi market
Domestically, gold holds significant cultural and economic importance in Saudi Arabia. It is not merely an investment tool, but also an integral part of social occasions such as weddings and gifts. 21-karat gold is the preferred choice for the majority of Saudi consumers due to its ideal balance of purity and durability, making it suitable for jewelry making. The current price decline may stimulate domestic demand for gold, whether for adornment or savings. It also presents an opportunity for smaller investors to increase their holdings of the precious metal at a lower cost, given the continued uncertainty surrounding the global economic outlook, thus reinforcing gold's role as a strategic asset in long-term investment portfolios.
