Gold prices in Saudi Arabia witnessed a notable decline during Thursday morning trading, continuing the volatility that has characterized global markets for the precious metal. This drop comes as consumers and investors alike await market trends before making purchasing or investment decisions, particularly regarding 21-karat gold, which is the most popular and widely traded in the local market.
Details of today's gold prices in Saudi Arabia
All traded calibers were affected by the decline, and below is an updated list of prices compared to yesterday's closing prices:
- The price of a gram of 24-karat gold: recorded approximately 610.25 Saudi Riyals, compared to 613 Riyals yesterday.
- The price of a gram of 22-karat gold has decreased to 559.5 Saudi Riyals, after it had been recording 562 Riyals.
- The price of a gram of 21-karat gold: It reached 534 Saudi riyals, down from 536.25 riyals in yesterday’s trading.
- The price of a gram of 18-karat gold: recorded 457.75 Saudi Riyals, compared to 459.75 Riyals.
- The price of a gram of 14-karat gold reached approximately 356 Saudi Riyals.
- The price of a gram of 12-karat gold has reached 305 Saudi Riyals.
Regarding other weights, the price of an ounce of gold in the Saudi market was recorded at 18980.75 riyals, while the price of a gold pound was 4271.75 riyals.
General context: Why do gold prices change?
Gold has historically been considered a safe haven for investors during times of economic and political crisis. However, its price is influenced by a complex set of global and local factors. The global price of gold is inversely related to the strength of the US dollar; when the dollar rises, gold becomes more expensive for holders of other currencies, potentially reducing demand. Furthermore, interest rate decisions by major central banks, most notably the US Federal Reserve, directly impact gold's attractiveness. Higher interest rates increase the opportunity cost of holding gold, which does not generate returns, prompting some investors to sell and move to other, interest-bearing assets.
The importance of the event and its expected impact
Domestically, the drop in gold prices presents an opportunity for consumers looking to purchase gold jewelry, whether for adornment or as gifts for social occasions where gold plays a central role in Saudi culture. It also encourages smaller investors to increase their holdings of gold bars and coins as a hedge against inflation and to preserve the value of their savings over the long term. For gold traders and jewelers, this decline could stimulate sales and boost market activity. Regionally and internationally, these movements in one of the largest gold markets in the Middle East reflect the overall state of the global economy, investor expectations regarding inflation and economic growth, and geopolitical tensions that could affect the stability of global financial markets.
