Gold prices in Saudi Arabia remained remarkably stable at the start of trading on Sunday, coinciding with the weekly closure of global stock exchanges. This stability allows investors and consumers a chance to take a breather and assess their positions before the start of a new trading week. This comes after a period of volatility in global markets, as the precious metal continues to be a safe haven for many amidst economic uncertainty and geopolitical tensions.
The price of a gram of 21-karat gold, the most common and traded type in the Kingdom's markets, is of particular interest to citizens and residents due to its widespread use in the manufacture of jewelry, which forms an essential part of local culture and traditions, especially for weddings and gifts. Its price stabilized today at 537.75 Saudi riyals.
Gold price list in Saudi Arabia today, Sunday
Below is a breakdown of gold prices for different carats traded in the Saudi market, in addition to the price of an ounce and a gold pound:
- The price of a gram of 24-karat gold reached 614.75 Saudi Riyals.
- The price of a gram of 22-karat gold: settled at 563.5 Saudi Riyals.
- The price of a gram of 21-karat gold: recorded 537.75 Saudi Riyals.
- The price of a gram of 18-karat gold: recorded 461 Saudi Riyals.
- The price of a gram of 14-karat gold reached 358.5 Saudi Riyals.
- The price of a gram of 12-karat gold: settled at 307.25 Saudi Riyals.
- The price of an ounce of gold: recorded 19,119 Saudi Riyals.
- The price of a gold pound was 4302.75 Saudi Riyals.
Global factors and their impact on the local market
Gold prices in the Saudi market are directly influenced by global prices, which are themselves subject to a complex set of economic and political factors. The US dollar exchange rate is one of the most important of these factors, as there is an inverse relationship between it and the price of gold; a stronger dollar typically leads to a weaker gold price, and vice versa. Monetary policy decisions by major central banks, particularly the US Federal Reserve, also play a pivotal role. Raising interest rates increases the opportunity cost of holding gold, which does not generate returns, thus putting downward pressure on its price.
The importance of gold as a safe haven and long-term investment
Throughout history, gold has maintained its status as a safe investment asset and store of value, particularly during times of economic crisis and high inflation. Investors turn to the precious metal to hedge against financial market volatility and protect their wealth from the erosion of currency purchasing power. In Saudi Arabia, the interest in gold extends beyond its role as an investment tool, encompassing deep social and cultural dimensions that ensure continued domestic demand for it as an integral part of the economy and society.
