Gold prices in Saudi Arabia remained relatively stable on Sunday, amid a sense of anticipation among consumers and investors, coinciding with fluctuations in the price of the precious metal on global exchanges. This stability reflects a temporary equilibrium between global factors and the forces of supply and demand in the local market.
Today's gold prices in Saudi Arabia in detail
In morning trading, prices for various carats remained at their previous levels. Below is a list of prices recorded today, Sunday:
- The price of a gram of 24-karat gold reached 586.5 Saudi Riyals.
- The price of a gram of 22-karat gold: settled at 537.75 Saudi Riyals.
- The price of a gram of 21-karat gold: recorded 513.25 Saudi Riyals, which is the most popular and traded karat in the Kingdom.
- The price of a gram of 18-karat gold reached 440 Saudi Riyals.
- The price of a gram of 14-karat gold: recorded 342.25 Saudi Riyals.
- The price of a gram of 12-karat gold settled at 293.25 Saudi Riyals.
As for larger quantities, the price of an ounce of gold in Saudi Arabia was recorded at 18,245.5 riyals, while the price of a gold pound was 4,106.25 riyals.
General context and impact of global markets
This stability in the Saudi domestic market comes at a time when the global gold market is experiencing a period of cautious anticipation. Historically, gold has been considered a safe haven for investors during times of economic uncertainty and geopolitical tensions. Its price is directly affected by the decisions of major central banks, most notably the US Federal Reserve. Higher interest rates typically increase the opportunity cost of holding gold, which does not generate returns, thus putting downward pressure on its price. Conversely, lower interest rates can have a positive effect.
The importance of gold in the Saudi economy and society
Domestically, gold holds significant cultural and economic importance in Saudi Arabia. It is not merely an investment tool to hedge against inflation and currency fluctuations, but an integral part of social traditions and occasions, such as weddings, where gold constitutes a substantial portion of the dowry and valuable gifts. Therefore, the stability of its price directly influences the purchasing decisions of Saudi families and those about to marry. Retailers and small investors also closely monitor these prices to determine the best times to buy and sell, making the local market closely linked to global trends and exchange rates, especially since the price of gold in Saudi Arabia is tied to the global price per ounce, denominated in US dollars.
