Gold prices in Saudi Arabia remained relatively stable on Wednesday, as consumers and investors awaited developments in global markets that directly impact the price of the precious metal locally. This stability comes amidst fluctuating global gold prices, reflecting a cautious approach among traders. Gold, particularly the 21-karat variety, which is the most popular and widely traded in the Kingdom, is considered an important economic indicator and a safe haven for many to preserve the value of their savings.
Gold price list in Saudi Arabia today, Wednesday
The gold prices for the various carats traded in the Saudi market today are as follows, taking into account that these prices do not include the manufacturing cost added when purchasing:
- The price of a gram of 24-karat gold: recorded 625.25 Saudi Riyals.
- The price of a gram of 22-karat gold reached 573.25 Saudi Riyals.
- The price of a gram of 21-karat gold: settled at 547 Saudi Riyals.
- The price of a gram of 18-karat gold reached 469 Saudi Riyals.
- The price of a gram of 14-karat gold: recorded 364.75 Saudi Riyals.
- The price of a gram of 12-karat gold reached 312.5 Saudi Riyals.
As for larger quantities, the price of an ounce of gold in Saudi Arabia today was recorded at 19,447.25 riyals, while the price of a gold pound was 4,376.75 riyals.
General context: Why is gold considered a safe haven?
Historically, gold has been associated with wealth and financial stability. Throughout the ages, it has served as a store of value, particularly during times of economic and political crisis. This is due to its relative scarcity, its physical properties that make it resistant to corrosion, and its universal acceptance as a medium of exchange. In modern times, investors and central banks turn to gold as a hedge against inflation, as its price tends to rise when paper currencies lose some of their purchasing power. Demand also increases during periods of geopolitical tension, as investors seek safe haven assets away from the volatility of stock and bond markets.
The impact of global factors on the price of gold in Saudi Arabia
The price of gold in Saudi Arabia is not determined in isolation from the world; rather, it is directly affected by global stock exchanges. Among the most significant influencing factors are:
- The US dollar exchange rate: Gold is priced globally in dollars. Generally, there is an inverse relationship between the two; when the dollar rises, the price of gold falls because it becomes more expensive for buyers using other currencies, and vice versa.
- Interest rates: Decisions by major central banks, particularly the US Federal Reserve, significantly impact gold. Raising interest rates increases the opportunity cost of holding gold, which does not generate income, potentially reducing its appeal.
- Global economic data: Indicators such as inflation rates, unemployment, and economic growth in major economies influence investors' attitudes toward safe assets such as gold.
Given the Saudi Riyal's peg to the US Dollar, any change in the global price of an ounce of gold in dollars is immediately and directly reflected in its price in Riyals in the local market, making it essential for those interested in the gold market in the Kingdom to follow global economic news.
