Gold prices in the Saudi market saw a significant increase today
Gold prices in Saudi Arabia saw a notable increase during trading on Wednesday, February 4th, continuing the series of fluctuations that have characterized global gold markets. This rise directly impacts both consumers and investors, who closely monitor price movements to make their purchasing or investment decisions. The 21-karat gold, the most popular and traded type in the Saudi market, recorded a new price surge, reflecting the uncertainty surrounding the global economy.
List of gold prices in Saudi Arabia today (per gram)
The gold prices for different carats in morning trading were as follows, compared to yesterday's closing prices:
- The price of a gram of 24-karat gold is 613.5 Saudi Riyals (compared to 597.25 Riyals yesterday).
- The price of a gram of 22-karat gold is 562.5 Saudi Riyals (compared to 547.5 Riyals yesterday).
- The price of a gram of 21-karat gold is 536.75 Saudi Riyals (compared to 522.5 Riyals yesterday).
- The price of a gram of 18-karat gold is 460.25 Saudi Riyals (compared to 448 Riyals yesterday).
- The price of one gram of 14-karat gold is 358 Saudi Riyals.
- The price of one gram of 12-karat gold is 306.75 Saudi Riyals.
The price of an ounce of gold today was recorded at 19,083.5 Saudi Riyals, while the price of a gold pound was 4,294.75 Saudi Riyals.
The global context and its impact on local prices
Gold has historically been considered a safe haven for investors during times of economic crisis and geopolitical tension. Gold prices in Saudi Arabia are directly linked to global prices, which are set in US dollars per ounce on international exchanges. Since the Saudi riyal is pegged to the dollar, any change in the global price is immediately reflected in the local market. Key factors currently driving global prices include the interest rate policies of the US Federal Reserve. Raising interest rates increases the opportunity cost of holding gold, which does not generate returns, potentially putting downward pressure on its price, and vice versa. Additionally, the strength of the dollar and political tensions in various parts of the world play a pivotal role in increasing demand for the precious metal as a hedge against risk.
The importance of rising prices and its expected impact
The rise in gold prices has a multifaceted impact on the Saudi economy and society. Locally, consumers who purchase gold jewelry, especially for weddings and gifts—a significant part of local culture—face higher costs. This may lead some to postpone purchases or opt for lower-karat gold. For investors, the price increase presents an opportunity for capital gains for those already holding gold, while it may encourage others to enter the market in anticipation of further increases. Regionally and internationally, this rise reflects the prevailing anxiety in global markets, with major central banks and investment funds increasing their gold reserves as part of an asset diversification strategy and to hedge against currency volatility and high inflation.
