Gold Today: In-Depth Analysis of Prices and Sector in Saudi Market

Gold is one of the oldest assets used as a store of value throughout history, and it occupies a special place in the Saudi economy. Gold today is treated as a strategic commodity and a means of hedging against risks, and it is overseen by the Saudi Central Bank (SAMA) and the Capital Market Authority. Gold is priced locally in Saudi riyals, while it is traded globally in US dollars under the symbol XAU/USD. In Saudi Arabia, the price per gram for common carats is announced daily, and gold is used for investment, savings, and jewelry making. It also forms part of official cash reserves and is viewed as a safe asset during periods of economic or political uncertainty. The Saudi financial market has launched products such as gold Murabaha contracts to facilitate the trading of gold in a Sharia-compliant and organized manner, enhancing investor confidence in the local pricing mechanism.

Gold prices today in Saudi Arabia have experienced notable fluctuations during 2024 and 2025, influenced by global factors such as US interest rate policy and geopolitical tensions. The price of an ounce of gold globally reached record levels exceeding $2100 at certain times, which reflected locally to reach approximately 258 riyals per gram for 24 karat at the peak of the increases. As markets stabilized and inflationary pressures eased, the price gradually decreased to approach 240 riyals per gram by the end of 2024. In 2025, prices rose again with renewed international tensions, where the gram recorded about 230 riyals at certain times. It is worth noting that these prices are variable and depend on the global price of the ounce and the fixed exchange rate of the dollar (3.75 riyals per dollar) in the Kingdom. Real-time prices can be accessed through SAMA's website or approved trading platforms.

Gold is priced globally today in dollars per ounce (approximately 31.10 grams) and is converted to Saudi riyals according to the official exchange rate. In Saudi Arabia, the main carats relied upon are 24 (99.9% purity) and 22 karats (91.6% purity). The 24 karat is used to calculate the official price, while the 22 karat is commonly used in the local jewelry market. The price is calculated using the formula: (Price per ounce in dollars ÷ 31.10) × 3.75 = Price per gram in riyals. SAMA also provides daily buying and selling prices, allowing individuals and companies to price their transactions accurately. Understanding gold carats is important for consumers, as it affects the final value of the gram, ingot, or gold coin.

Today's gold price is influenced by several interrelated factors, the most prominent of which are:
- Monetary policy and global interest rates: Raising interest rates reduces gold's attractiveness, and vice versa.
- Global inflation: Rising inflation boosts demand for gold as a safe haven.
- Strength of the US dollar: There is an inverse relationship between the dollar's price and gold's price.
- Geopolitical crises: Increasing tensions or instability drive investors towards gold.
- Supply and demand: Increased production from mines or changes in central bank reserves affect prices.
- Consumer demand and local seasons (such as weddings in Saudi Arabia) play a role in gold demand.
These combined factors explain why gold prices experience continuous fluctuations, necessitating that observers monitor global and local economic indicators.

The gold sector in Saudi Arabia is part of the broader precious metals sector and is receiving government attention under Vision 2030 to diversify the economy. The Kingdom is working to develop the mining industry and increase local gold production through exploration projects and the development of new mines. Ma'aden, as the leading company in this sector, manages several mines and expands its investments in gold and other minerals extraction. Recent legislation and innovative trading products (such as Murabaha contracts) contribute to enhancing gold's presence as an organized investment asset. The sector is sensitive to changes in the global economy, as profit margins are affected by price fluctuations and production costs, in addition to competition with other investment products such as oil and hard currencies.

Although gold itself is not a listed stock in the Saudi financial market, companies like Ma'aden play a pivotal role in the sector. Ma'aden focuses on exploring and producing gold among other minerals and is the largest local mining company. The company's results are affected by global gold price movements, production rates, and operational efficiency. The company also provides periodic data on revenues and growth and is subject to the oversight of the Capital Market Authority. Investing in Ma'aden's shares or other mining companies allows investors to participate in the sector's growth, keeping in mind that stock performance is linked to a range of factors beyond just the price of gold, such as other mineral prices, operating costs, and expansion projects.

Competition in the gold market is not limited to companies alone, but also includes other asset classes such as silver, hard currencies (US dollar), oil, stocks, bonds, and even cryptocurrencies like Bitcoin. Each of these alternatives offers different features and risks. For example, silver is seen as a close alternative to gold during market volatility, while oil attracts capital during periods of economic recovery in Saudi Arabia. Cryptocurrencies provide innovative alternatives but carry higher levels of risk. Investors in Saudi Arabia choose between these alternatives based on their investment goals and risk assessment, keeping in mind that gold often retains its appeal during crises.

The gold market witnessed several impactful developments during 2024 and 2025:
- Record price increases at the beginning of 2024, driven by central bank decisions and increased institutional demand.
- A relative decline in prices as inflation eased and monetary policy trends changed.
- Escalating geopolitical tensions, which brought gold back to the forefront as a safe haven.
- Launch of new local investment products, such as digital gold trading platforms and gold investment funds.
- Growth in local gold production with new discoveries and expansions by Ma'aden.
- Increased public interest in purchasing gold bars and coins, especially during national seasons and events.
These developments reflect the dynamic nature of today's gold market and the importance of following economic and political news to assess market movements.

The Saudi financial market offers several mechanisms for trading gold:
- Direct purchase of gold bars and coins from approved exchange shops.
- Investment through Sharia-compliant gold Murabaha contracts, which were launched within the Saudi commodity derivatives market.
- Indirect investment through shares of local or international mining companies (via international brokerage accounts).
- Currently, there are no gold exchange-traded funds (ETFs) available in the local market, but similar products exist in global markets.
Each mechanism has its characteristics and regulatory requirements, and it is essential to ensure dealings with licensed brokers and compliance with local regulations.

Gold today is considered one of the main tools for hedging and diversifying investment portfolios in Saudi Arabia. This is due to gold's characteristics as an asset relatively independent of stock and bond market fluctuations, and its ability to preserve value during periods of declining returns from other assets. Gold is often allocated between 5% to 15% of balanced investment portfolios. However, it is worth noting that gold does not provide periodic income like stocks or bonds, and its returns depend solely on capital changes. Therefore, investing in gold requires a precise understanding of its role within a hedging strategy and long-term growth objectives.

The gold sector has witnessed rapid technological developments, the most notable of which are:
- Launch of digital platforms for gold trading that allow individuals to invest easily and transparently.
- Use of blockchain and gold-backed cryptocurrencies, providing new tools for hedging and facilitating transactions.
- Increasing reliance on financial applications to track prices and execute trades.
These developments contribute to increasing the liquidity of the gold market and facilitating access for various investor segments. However, they impose regulatory challenges related to consumer protection and ensuring transparency, requiring continuous monitoring of technological and regulatory developments in the sector.

Gold trading in Saudi Arabia is subject to the oversight and regulation of the Capital Market Authority and the Central Bank (SAMA). Financial institutions must comply with disclosure and transparency standards and implement Know Your Customer (KYC) procedures to combat money laundering. Regulations also require dealing with licensed brokers and ensuring the quality of gold and compliance with specifications. Gold prices are announced daily through official channels to ensure fairness and clarity in pricing. Regulatory bodies are working to develop new investment products that comply with Sharia, while enhancing protection measures for individual and institutional investors.

The future of gold today is influenced by several variables, the most prominent of which are global economic trends, changes in monetary policy, and geopolitical developments. With increasing interest in local mining in Saudi Arabia, the sector's contribution to the national economy is expected to grow, while gold remains a preferred haven during crises. As investment products and digital platforms evolve, gold will continue to attract investors seeking diversification and hedging. However, the future performance of gold will depend on the balance of supply and demand, movements in global financial markets, and the continuity of innovation in the local sector.