Gold markets in Saudi Arabia witnessed a noticeable decline in prices across all karats on Monday, most notably the 21-karat gold, which is the most popular in the local market. This drop coincides with the continued volatility in gold prices on global exchanges, reflecting the Saudi market's connection to international economic trends.
Details of today's gold prices in Saudi Arabia
Gold prices were noticeably affected in evening trading compared to morning prices, as consumers and investors alike awaited these movements before making their purchasing or investment decisions. The following is a breakdown of the recorded prices:
- The price of a gram of 24-karat gold: The price of a gram recorded 605 riyals, down from 607 riyals in the morning.
- The price of a gram of 22-karat gold: The price per gram has decreased to 554.75 riyals, compared to 556.5 riyals in morning trading.
- The price of a gram of 21-karat gold: The price of a gram reached 529.5 riyals, after it had recorded 531 riyals in the morning, which is the most traded karat.
- The price of a gram of 18-karat gold: The price of a gram has decreased to record 453.75 riyals, compared to 455.25 riyals.
- Prices of other carats: The less traded carats also witnessed a decrease, with the price of a gram of 14 carat reaching about 353 riyals, and the price of a gram of 12 carat reaching about 302.5 riyals.
In broader trading terms, the price of an ounce of gold in Saudi Arabia was recorded at 18,819.75 riyals, while the price of a gold pound was 4,235.5 riyals.
The global context and its impact on local prices
Gold has historically been considered a safe haven for investors during times of economic crisis and geopolitical tension. However, its price is directly affected by several global factors. The most prominent of these are the policies of major central banks, particularly the US Federal Reserve. When interest rates rise, demand for bonds and the US dollar increases, reducing the appeal of gold, which does not generate returns, and often leading to a price decrease. Conversely, expectations of interest rate cuts boost the value of the precious metal. The dollar exchange rate also plays a pivotal role, as the relationship between the dollar and gold is generally inverse; a stronger dollar makes gold more expensive for holders of other currencies.
The importance of gold price fluctuations for the Saudi market
The decline in gold prices presents an opportunity for consumers in Saudi Arabia, particularly those looking to purchase gold jewelry, which is an essential part of social occasions such as weddings and gifts. 21-karat gold is the preferred choice due to its ideal balance between purity and durability. For investors, periods of low prices can be suitable entry points to bolster their gold portfolios, serving as a hedge against inflation and the volatility of other financial markets. This increased interest in gold investment aligns with the goals of Saudi Vision 2030, which aims to diversify the economy and expand savings and investment opportunities for citizens.
