The precious metals market in Saudi Arabia witnessed significant price movements on Monday, December 22, 2025, attracting the attention of investors and those planning weddings, as gold prices recorded a new increase across all traded karats. This rise coincides with the ongoing volatility in global stock markets, which has directly impacted the local market, restoring gold to its prominent position as a safe haven amidst financial fluctuations.
Details of today's gold prices in Saudi Arabia
In morning trading today, the price of a gram of 21-karat gold, the most popular and widely sold type in the Kingdom due to its suitability for jewelry and ornaments, jumped to new highs compared to yesterday's closing price. Below is a detailed list of prices for all karats:
- The price of a gram of 24-karat gold: recorded 532 riyals, up from 523 riyals. This karat is considered the first choice for those wishing to buy raw gold bullion for savings and long-term investment due to its high purity.
- The price of a gram of 22-karat gold reached 488 riyals, compared to 479.5 riyals in yesterday's transactions.
- The price of a gram of 21-karat gold reached 465.75 riyals, compared to 457.75 riyals, which is the preferred karat for Saudi families on occasions and gifts.
- The price of a gram of 18-karat gold: recorded 399.25 riyals, up from 392.25 riyals, and is witnessing increasing demand for its modern designs and relatively low prices compared to heavier karats.
- The price of a gram of 14-karat gold: settled at 310.5 riyals.
- The price of a gram of 12-karat gold: recorded 266.25 riyals.
Prices of gold bars and gold sovereigns
As for heavy weights, an ounce of gold in Saudi Arabia today recorded a price of 16,560 riyals, while the price of a gold pound (weighing 8 grams of 21 carats) reached 3,727 riyals, which reflects the general increase in the value of the yellow metal.
Why are gold prices rising? (An analytical perspective)
To understand the context of this surge, it's necessary to examine the macroeconomic factors that govern the gold market globally and locally. Historically, gold has been considered a primary store of value, and its price is typically influenced by several key factors, most notably:
- Its relationship with the US dollar: There is often an inverse relationship between the dollar index and gold prices; when the value of the US currency falls globally, capital flows towards gold as an investment alternative, which raises its price, and vice versa.
- Geopolitical and economic tensions: In times of political uncertainty or fear of inflation, investors and central banks resort to strengthening their gold reserves, which increases demand and thus raises prices.
- Global interest rates: Decisions by major central banks regarding interest rates directly affect the attractiveness of gold as an asset that does not generate periodic returns (interest), compared to bonds and bank deposits.
The importance of gold in the Saudi market
Gold holds a special place in Saudi culture and the local economy, not only as an adornment but also as a primary savings vehicle for families. 21-karat gold is the gold standard in the Saudi traditional jewelry market, while individual and corporate investors tend to favor 24-karat gold (bullion) to protect their cash from the erosion of purchasing power. With the current price surge, experts consistently advise monitoring the market carefully, as investing requires a long-term perspective that transcends minor daily fluctuations.
