Gold markets in Saudi Arabia witnessed a significant price increase on Tuesday, January 20, 2026, continuing a series of fluctuations that reflect uncertainty in global markets. This rise directly impacts both consumers and investors, particularly with the increase in the price of a gram of 21-karat gold, the most popular and widely traded type in the local market.
Gold prices in Saudi Arabia today, Tuesday, January 20, 2026
Below is a breakdown of gold prices for different carats in the Saudi market, according to the latest evening updates:
- Price of one gram of 24-karat gold: 570.25 Saudi Riyals
- Price of one gram of 22-karat gold: 522.5 Saudi Riyals
- Price of one gram of 21-karat gold: 498.75 Saudi Riyals
- Price of one gram of 18-karat gold: 427.5 Saudi Riyals
- Price of one gram of 14-karat gold: 332.5 Saudi Riyals
- Price of one gram of 12-karat gold: 285 Saudi Riyals
- Price of an ounce of gold: 17733.25 Saudi Riyals
- Price of a gold pound: 3991 Saudi Riyals
The global context and reasons for gold price fluctuations
Local gold price movements cannot be understood without considering the broader global context. Gold has historically been considered a "safe haven" for investors during times of economic and geopolitical turmoil. The price of the precious metal is directly affected by the decisions of major central banks, most notably the US Federal Reserve. When interest rates rise, gold tends to lose some of its appeal because it does not generate returns, and vice versa. The strength of the US dollar also plays a pivotal role; the relationship between the two is generally inverse, with a stronger dollar making gold more expensive for holders of other currencies.
The recent period has witnessed increasing geopolitical tensions and fears of a slowdown in global economic growth, prompting investors to increase their gold holdings as a hedge against inflation and the volatility of other financial markets, which explains the current surge that is reflected in local markets such as the Saudi market.
The impact of rising gold prices on the Saudi market
In Saudi Arabia, gold holds dual cultural and economic significance. On the one hand, it is a fundamental component of social occasions such as weddings, representing an integral part of tradition. The current price surge may influence consumer purchasing decisions, potentially leading some to postpone buying or seek lower-karat gold. On the other hand, many view gold as a long-term savings and investment vehicle for preserving wealth. For them, the current price increase represents a capital gain that enhances the value of their savings.
On a broader economic level, local gold prices reflect investor confidence in the global economy and their overall outlook. Investors in the Saudi stock market (Tadawul) also monitor global commodity prices, including gold, as an indicator of risk appetite in global markets, which can influence foreign investment flows into the Kingdom.
