Gold prices in Saudi Arabia remained relatively stable today, despite continued fluctuations in global gold markets. This stability comes as consumers and investors alike await future market trends, particularly regarding the price of 21-karat gold, the most popular and widely traded type in the Saudi market.
Gold prices today in Saudi Arabia for different carats
The following is a list of gold prices recorded today in the Saudi market for various carats, reflecting the current state of stability:
- The price of a gram of 24-karat gold: recorded approximately 598 Saudi Riyals.
- The price of a gram of 22-karat gold: settled at 548.25 Saudi Riyals.
- The price of a gram of 21-karat gold reached 523.25 Saudi Riyals.
- The price of a gram of 18-karat gold: recorded approximately 448.5 Saudi Riyals.
- The price of a gram of 14-karat gold reached 348.75 Saudi Riyals.
- The price of a gram of 12-karat gold: settled at 299 Saudi Riyals.
The price of an ounce of gold in Saudi Arabia today was recorded at 18,598.75 riyals, while the price of a gold pound reached 4,185.75 riyals.
The global context and its impact on the local market
Historically, gold has been considered a safe haven for investors during periods of economic uncertainty and geopolitical tensions. The global price of gold is directly affected by the interest rate decisions of major central banks, particularly the US Federal Reserve. When interest rates rise, investors tend to favor yield-generating assets like bonds, thus reducing the appeal of gold, which does not offer a return. Conversely, lower interest rates boost the value of the precious metal.
In addition, the US dollar exchange rate plays a pivotal role, as the relationship between it and gold is often inverse. A stronger dollar makes gold more expensive for holders of other currencies, thus reducing demand, and vice versa. Local prices in Saudi Arabia are affected by these global factors, since gold is priced in dollars on international exchanges and then converted to Saudi riyals.
The importance of gold in the Saudi economy and culture
Gold holds special significance in Saudi Arabia. It is not merely an investment tool or a reserve asset for the central bank, but an integral part of the culture and social occasions. Citizens and residents alike purchase gold jewelry, particularly 21-karat and 18-karat gold, as gifts for weddings and other celebrations, creating consistent domestic demand. Many also view buying gold bars and coins as a way to save and preserve the value of their wealth over the long term against inflation. This dual demand, for both adornment and investment, makes the Saudi gold market one of the most active in the region, directly influenced by consumer purchasing power and the stability of global prices.
