Gold prices in Saudi Arabia remained relatively stable on Tuesday, despite fluctuations in global markets for the precious metal. This stability comes as consumers and investors alike await future price trends, particularly for 21-karat gold, the most popular and widely traded type in the Kingdom.
Gold prices today in Saudi Arabia in Saudi Riyals
The gold prices for different carats in the Saudi market today, Tuesday, are as follows, taking into account that these prices do not include the manufacturing cost that is added when buying:
- The price of a gram of 24-karat gold: recorded 607 Saudi Riyals.
- The price of a gram of 22-karat gold reached 556.5 Saudi Riyals.
- The price of a gram of 21-karat gold: settled at 531.25 Saudi Riyals.
- The price of a gram of 18-karat gold reached 455.25 Saudi Riyals.
- The price of an ounce of gold: recorded 18882.25 Saudi Riyals.
- The price of a gold pound: It reached 4249.5 Saudi Riyals.
General context and its impact on gold prices
Historically, gold has been considered a safe haven for investors worldwide, who turn to it to hedge against inflation, economic instability, and geopolitical turmoil. Global gold prices are directly affected by the monetary policy decisions of major central banks, most notably the US Federal Reserve. Any change in interest rates impacts the strength of the US dollar, in which gold is priced globally, and this, in turn, affects local markets.
Since the Saudi riyal is pegged to the US dollar, any change in the global price of gold has an immediate and direct impact on prices in the Saudi market. Therefore, investors in the Kingdom closely monitor US economic data and inflation indicators to anticipate future movements in the price of the precious metal.
The importance of gold in the Saudi market and future prospects
Gold holds significant cultural and economic importance in Saudi Arabia. It is not merely an investment tool, but an integral part of social occasions such as weddings, where it is given as a valuable gift. Saudi consumers particularly favor 21-karat gold for its ideal balance of purity and durability, making it the preferred choice for gold jewelry.
From an investment perspective, gold represents an important diversification tool in the investment portfolios of citizens and residents, whether through the purchase of gold bars and coins or through exchange-traded funds (ETFs). With continued uncertainty in the global economy, demand for gold as a store of value is expected to remain strong, making daily monitoring of its prices essential for a large segment of society.
