Gold prices in Saudi Arabia saw a significant increase during trading on Monday, continuing the volatility affecting the precious metal's price on global exchanges. This rise directly impacts both consumers and investors, particularly regarding 21-karat gold, which is the most popular and widely traded type in the Saudi market.
Historical background and the importance of gold as a safe haven
Historically, gold is considered one of the oldest and most stable financial assets. Throughout the ages, individuals and nations have turned to it as a store of value and a safe haven during times of economic and political crisis. During periods of high inflation or geopolitical tensions, demand for gold increases as a hedge against currency and stock market volatility, driving its price up. This pivotal role remains unchanged, as central banks around the world continue to hold substantial gold reserves as part of their assets, reinforcing its status as a global strategic asset.
Factors affecting gold prices globally and locally
Gold prices in Saudi Arabia are directly influenced by global prices, which are themselves subject to a complex set of factors. Foremost among these is the exchange rate of the US dollar, with which gold has an inverse relationship; the stronger the dollar, the lower the price of gold (which is priced in dollars), and vice versa. Interest rate decisions by major central banks, particularly the US Federal Reserve, also play a crucial role. When interest rates rise, the appeal of bonds and other income-generating assets increases, thus reducing the attractiveness of gold, which does not offer a direct return. Furthermore, inflation data, global economic growth rates, and political tensions all affect investors' risk appetite and, consequently, the demand for gold.
Gold price list today in Saudi Arabia
The following are details of the prices recorded today, Monday, compared to yesterday's closing prices:
- The price of a gram of 24-karat gold reached 607 riyals, compared to 598 riyals yesterday.
- The price of a gram of 22-karat gold rose to 556.5 riyals, compared to 548 riyals yesterday.
- The price of a gram of 21-karat gold: recorded 531 riyals, compared to 523.25 riyals yesterday.
- The price of a gram of 18-karat gold: recorded 455.25 riyals, compared to 448.5 riyals yesterday.
- The price of a gram of 14-karat gold reached 354 riyals.
- The price of a gram of 12-karat gold has risen to 303.5 riyals.
Prices of gold per ounce and pound
- The price of an ounce of gold: recorded 18879.25 riyals.
- The price of a gold pound was 4249 riyals.
Expected impact on the Saudi market
This price surge is reflected in the purchasing decisions of consumers planning to buy gold jewelry, whether for adornment or as gifts for social occasions where gold plays a central role in tradition. For investors and savers, this increase may present an opportunity to realize capital gains upon selling, while others may be anticipating any potential price drops to increase their holdings of the precious metal. The Saudi gold market remains a mirror of global economic trends, and experts expect continued market anticipation as the market awaits new economic data that could determine price direction in the coming period.
