Gold prices in Saudi Arabia witnessed a noticeable decline at the start of trading on Monday, December 29, 2025, influenced by the volatility affecting global gold markets. This decrease encompassed all karats traded in the Kingdom, most notably the 21-karat gold, which is the most popular among citizens and residents, thus stimulating buying interest among those looking to purchase or invest.
Details of today's gold prices in Saudi Arabia
According to the latest data issued by the gold markets in the Kingdom, the price list for the different carats is as follows:
- The price of a gram of 24-karat gold was 539.5 Saudi Riyals. This karat represents pure gold and is often used in investment bullion.
- The price of a gram of 22-karat gold has decreased to 494.5 Saudi Riyals.
- The price of a gram of 21-karat gold reached 472 Saudi riyals. This karat is the most popular in the jewelry industry in the Arab region.
- The price of a gram of 18-karat gold: recorded 404.5 Saudi Riyals, which is the preferred karat for fine gold jewelry studded with gemstones.
- The price of a gram of 14-karat gold reached 314.75 Saudi Riyals.
- The price of a gram of 12-karat gold has decreased to 269.75 Saudi Riyals.
Prices of gold bars and gold sovereigns
Regarding the weights of heavy gold, an ounce of gold in Saudi Arabia today recorded a price of 16,779.25 riyals, while the price of a gold pound (which usually weighs 8 grams of 21 carats) recorded about 3,776.25 riyals.
Factors affecting gold prices locally and globally
The price of gold in Saudi Arabia is closely linked to the global price per ounce, due to the Saudi riyal's peg to the US dollar. Prices are typically influenced by several key economic factors, including:
- US Dollar Price: There is a traditional inverse relationship between gold and the dollar; the higher the dollar price globally, the lower gold prices tend to be, and vice versa.
- Oil prices: As Saudi Arabia is a major oil-producing country, oil revenues affect domestic liquidity and purchasing power, which is sometimes reflected in the size of domestic demand for gold.
- International economic decisions: The US Federal Reserve's decisions regarding interest rates play a crucial role in directing investors either towards bonds and the dollar or towards safe havens such as gold.
The importance of gold as a safe haven and investment
Throughout history, gold has been considered a primary store of value, especially during times of economic uncertainty or geopolitical tensions. In Saudi culture, gold is not merely for adornment; it is viewed as a safe haven asset that protects the value of money from inflation and currency fluctuations. Experts consistently advise diversifying investment portfolios, recommending that gold should constitute between 10% and 15% of total investments to hedge against risk.
Consumers wishing to purchase jewelry are advised to keep track of manufacturing costs, which vary from one shop to another and from one brand to another, while investors are advised to opt for 24-karat gold bullion due to its lower manufacturing cost compared to gold jewelry.
