Gold prices in Saudi Arabia saw a notable increase during trading on Wednesday, continuing the volatility that has characterized the performance of the precious metal in global markets. This rise comes at a time when consumers and investors alike are closely watching market trends, particularly regarding the price of a gram of 21-karat gold, which is the most popular and widely traded type in the Kingdom.
Gold prices today in Saudi Arabia for different karats
Here is an updated list of gold prices in the Saudi market today, Wednesday, compared to yesterday's closing prices:
- The price of a gram of 24-karat gold reached 595 riyals, compared to 588.25 riyals yesterday.
- The price of a gram of 22-karat gold rose to 545.25 riyals, compared to 539.25 riyals yesterday.
- The price of a gram of 21-karat gold: recorded 520.5 riyals, compared to 514.75 riyals yesterday.
- The price of a gram of 18-karat gold reached 446.25 riyals, compared to 441.25 riyals yesterday.
- The price of a gram of 14-karat gold reached 347 riyals.
- The price of a gram of 12-karat gold has risen to 297.5 riyals.
- The price of an ounce of gold: recorded 18504.75 riyals.
- The price of a gold pound was 4164.5 riyals.
General context: Why does the price of gold change?
Gold has historically been considered a safe haven for investors worldwide, who turn to it to preserve the value of their savings during times of economic and political uncertainty. Local gold prices in Saudi Arabia are directly influenced by global prices, which are denominated in US dollars. One of the most prominent factors currently driving the global market is the monetary policies of major central banks, most notably the US Federal Reserve. When interest rates rise, gold tends to lose some of its appeal because it does not generate returns, and vice versa.
In addition, the US dollar exchange rate plays a pivotal role, as there is an inverse relationship between it and gold. A strong dollar makes gold more expensive for holders of other currencies, which can reduce demand. Geopolitical tensions and global economic data, such as inflation and unemployment rates, also contribute to increasing or decreasing demand for the precious metal.
The importance of the event and its impact on the Saudi market
Fluctuations in gold prices are of particular importance in the Saudi market, not only to investors but also to consumers. Culturally, gold is closely associated with social occasions such as weddings, where it forms an essential part of gifts and dowries. Therefore, any increase in prices directly impacts the budgets of families preparing for these events.
From an investment perspective, many citizens and residents of the Kingdom consider buying gold bars and coins an effective way to hedge against inflation and preserve wealth in the long term. Since the Saudi riyal is pegged to the US dollar, any change in the global price of gold is immediately and accurately reflected in the riyal price, making the local market a mirror of global trends. Investors continue to closely monitor global economic data to make informed decisions about buying or selling gold.
