Gold prices in Saudi Arabia remained relatively stable on Sunday, coinciding with the weekly closure of global stock markets. This stability allows consumers and investors a chance to take a breather and assess the situation before the start of a new trading week. This comes after a period of fluctuations in the price of the precious metal globally, influenced by global economic data and monetary policy decisions by major central banks.
Gold prices in Saudi Arabia updated today, Sunday
Gold, especially 21-karat gold, is the most popular and traded option in the Saudi market due to its high quality and reasonable price compared to 24-karat gold. Below is an updated list of prices for the various karats and units traded today:
- The price of a gram of 24-karat gold: The price of a gram of 24-karat gold, which is the purest, was recorded at about 598 Saudi riyals.
- The price of a gram of 22-karat gold: The price of a gram of 22-karat gold reached approximately 548.25 Saudi Riyals.
- The price of a gram of 21-karat gold: The price of a gram of 21-karat gold has stabilized at 523.25 Saudi Riyals.
- The price of a gram of 18-karat gold: The price of a gram of 18-karat gold reached 448.5 Saudi Riyals.
- The price of a gram of 14-karat gold: The price of a gram of 14-karat gold was recorded at approximately 348.75 Saudi Riyals.
- The price of a gram of 12-karat gold: The price of a gram of 12-karat gold reached approximately 299 Saudi Riyals.
Prices of other gold units
- The price of an ounce of gold: The price of an ounce in the Saudi market was recorded at 18,598.75 Saudi Riyals.
- The price of a gold pound: The price of a gold pound today reached 4185.75 Saudi Riyals.
General context and the importance of gold as a safe haven
Historically, gold has been considered a safe haven for investors during times of economic uncertainty and geopolitical tensions. Gold prices in the Saudi Arabian market are directly linked to the price per ounce on global exchanges, as well as the exchange rate of the US dollar against the Saudi riyal. Several factors influence the global price, most notably the interest rate policies set by the US Federal Reserve. Raising interest rates increases the opportunity cost of holding gold, which does not generate returns, potentially leading to a decrease in its price, and vice versa.
Expected impact on the local and regional market
Domestically, consumers and investors in Saudi Arabia closely monitor gold prices. For consumers, gold is an integral part of culture and social occasions such as weddings, where it is given as a valuable gift. For investors, gold is an effective hedge against inflation and currency fluctuations. Any changes in global prices are immediately reflected in the local market, influencing buying and selling decisions. Regionally, Saudi Arabia is one of the largest gold markets in the Middle East, and any stability or volatility in its prices affects trade in the region, particularly with other Gulf countries that share similar economic and cultural characteristics.
