Gold prices in Saudi Arabia witnessed a notable decline during trading on Thursday, continuing the fluctuating trend that has characterized the performance of the precious metal in local and global markets recently. This drop comes at a time when investors and consumers alike are awaiting future price trends, particularly for 21-karat gold, which is the most popular and widely traded in the Kingdom.
Gold price list today in Saudi Arabia
All calibers were affected by the new decline, and the prices in morning trading were as follows:
- The price of a gram of 24-karat gold: recorded 592.25 riyals, compared to 596.5 riyals at yesterday's close.
- The price of a gram of 22-karat gold reached 543 riyals, after it was 546.75 riyals at the end of yesterday's trading.
- The price of a gram of 21-karat gold has decreased to 518.25 riyals, compared to 522 riyals yesterday.
- The price of a gram of 18-karat gold reached 444.25 riyals, compared to 447.5 riyals at the previous close.
- The price of a gram of 14-karat gold: recorded approximately 345.5 riyals.
- The price of a gram of 12-karat gold reached approximately 296.25 riyals.
Regarding bullion, the price of an ounce of gold in Saudi Arabia today is 18421.25 riyals, while the price of a gold pound is 4145.75 riyals.
General context and the impact of global factors
Local gold prices in Saudi Arabia cannot be separated from their global context, as they are directly linked to the price per ounce on international exchanges. Gold is considered a safe-haven asset that investors turn to during periods of economic uncertainty and geopolitical tensions. Historically, the value of gold has increased during financial crises and wars, as it is seen as a reliable store of value that is not as affected by the fluctuations of paper currencies.
The global price of gold is currently influenced by several key factors, most notably the interest rate policies pursued by the US Federal Reserve and other major central banks. When interest rates rise, the yield on bonds and other interest-bearing assets increases, reducing the appeal of gold, which does not generate returns. The strength of the US dollar also has a counterproductive effect; a stronger dollar makes gold more expensive for holders of other currencies, potentially reducing demand.
The importance of the event and its expected impact on the Saudi market
The drop in gold prices is a significant event for the Saudi market, given the cultural and economic importance of the precious metal. Locally, gold is an integral part of social traditions, particularly in weddings, where it is often given as a valuable gift (the dowry). Therefore, the price decrease presents an opportunity for couples and families to purchase jewelry at a lower cost.
For investors, the price decline may be seen as a suitable entry point to increase their gold holdings, whether in the form of bars or coins, as a means of hedging against inflation and diversifying their investment portfolios. This drop is expected to stimulate buying and selling activity in the Kingdom's gold and jewelry markets, with consumers anticipating further declines that may occur amid continued global volatility.
