Gold Gram in Saudi Arabia: Comprehensive Guide to Prices, Factors, and Trends

The gold gram is defined as a unit of measurement for the weight of gold, widely used in both the jewelry market and investment trades in Saudi Arabia. One gram is equivalent to a part of an ounce (1 troy ounce ≈ 31.1035 grams), with 24-carat gold (nearly 99.9% pure) being the standard for pricing and investment. Historically, gold holds a significant position in Saudi culture, both in adornment and as a means of saving and protecting against inflation. With the evolution of the Saudi financial market (Tadawul), it has become possible to trade gold through digital platforms or designated bank accounts, making it easier for individuals and institutions to invest in it. The value of the gold gram in the local market is determined based on the global price of gold in dollars per ounce, the exchange rate of the riyal against the dollar, and local factors such as supply, demand, and operational fees.

During 2024 and 2025, the price of the gold gram in Saudi Arabia experienced significant fluctuations due to global and local market volatility. At the beginning of 2024, the average price of 24-carat gold was around 241 Saudi riyals, gradually rising to about 245 riyals by the end of the year. As 2025 began, the upward trend continued, driven by global inflationary pressures and changes in central bank policies, with the average price of the gram ranging between 245 and 250 riyals in the first half of 2025. This change is attributed to rising global energy and food prices, along with expectations of monetary policy easing. Additionally, the recovery of local demand and the return of economic activity post-pandemic supported prices. It is noted that these figures are approximate and subject to daily fluctuations, which can be tracked through bank platforms or official websites specializing in real-time price publication.

The price of the gold gram in Saudi Arabia primarily depends on the global price of gold per ounce in US dollars, which is determined in the London and New York markets. To convert this price to Saudi riyals, the ounce price (e.g., 2000 dollars) is divided by 31.1035 to obtain the price per gram in dollars, then multiplied by the exchange rate of the riyal against the dollar (usually around 3.75). After that, the local margin is added, which includes import costs, insurance, operational costs, and trader profits. During peak times or occasions, this margin may increase slightly. The type and carat of gold (24, 22, or 21 carats) are also considered when calculating the price, with 24-carat being the highest priced standard. Pricing in Saudi Arabia is relatively transparent, and prices are often updated according to global and local fluctuations in real-time.

The carat of gold is a direct indicator of the purity of the metal in the ingot or piece. 24-carat represents nearly pure gold (99.9%), while 22-carat contains 91.6% gold and the remainder consists of other metals (such as copper or silver). This difference in purity directly affects the price; 22-carat is usually sold at a price 8-10% lower than 24-carat. Investors prefer to buy 24-carat bars to retain value, while 22 or 21 carats are used in jewelry due to their higher durability and suitability for daily adornment. When purchasing gold, it is always advisable to ensure the carat and weight certificate to guarantee the true value of the gram paid.

There are various methods for purchasing gold in Saudi Arabia to suit different segments of society and their investment needs. The traditional method includes buying bars or jewelry from licensed gold shops spread across markets and shopping malls, where sales are made by the gram and according to carat. Recently, it has become possible to open gold-designated accounts at some Saudi banks, allowing customers to purchase fractions of a gram and benefit from price changes through digital platforms. The Saudi Tadawul platform has also launched gold contracts that enable individuals and institutions to trade gold similarly to stocks, with actual settlement available when needed. Finally, smartphone applications have emerged that allow for instant gold purchases, including buying fractions of a gram and converting them into physical gold upon request. When buying, it is advisable to compare prices between platforms and shops and verify accreditation certificates.

The price of the gold gram is influenced by several global and local factors. Globally, the US dollar price, interest rates set by major central banks (especially the US Federal Reserve), inflation rates, and central banks' tendencies to buy or sell gold as reserves affect the price. Geopolitical events and global economic crises support gold as a safe haven, increasing demand, which often leads to price rises. Locally, the price of gold in Saudi Arabia is affected by seasonal demand (holidays and social occasions), the volume of imports from abroad, customs policies, and shipping and insurance costs. Additionally, the recovery of the national economy and rising individual incomes increase the demand for gold, especially during seasons. It is important to note that the Saudi riyal is pegged to the dollar, making the impact of dollar fluctuations on gold more direct in the local market.

Saudi Arabia is one of the largest gold consumption markets in the Gulf region, with individuals purchasing gold for saving, adornment, and gifts. In 2024, local demand was estimated to rise by 5-7% compared to the previous year, driven by improved incomes and economic activity recovery. The Kingdom imports most of its gold from the UAE, India, and Switzerland, with gold imports exceeding 60 tons in 2024. On the production side, local output remains limited compared to consumption, despite exploration operations in the northern and southwestern regions. The jewelry sector faces strong competition between local companies and global brands, with significant expansion in online stores and annual exhibitions. Banks are playing an increasing role through digital gold products and gold-linked savings accounts.

Despite gold's unique status as a safe haven, there are alternatives and investments that compete for capital. Silver is considered the closest alternative to gold, especially for individuals with smaller capital, as its prices fluctuate more but are less costly. Other precious metals (platinum, palladium) are included in the options for industrial investors, while competition in the Saudi consumer market remains limited. Cryptocurrencies, led by Bitcoin, are sometimes promoted as a digital alternative to gold, but most Saudis prefer physical gold for its stability and legitimacy. Stocks, bonds, and real estate compete with gold within asset allocation strategies, while gold's appeal increases during crises or downturns in financial markets. Finally, the dollar and foreign currencies pose a direct competition to gold, especially with changes in exchange rates and global inflation.

Gold plays a pivotal role in the Saudi economy as a reserve asset for the central bank and a hedge against currency fluctuations and inflation. Gold constitutes part of the reserves of the Saudi Arabian Monetary Authority, supporting the stability of the national currency and enhancing confidence in the financial system. The Saudi riyal does not rely on a gold standard but is linked to the US dollar; however, gold is used as a tool for asset diversification and risk reduction. At the financial policy level, Saudi Vision 2030 encourages economic diversification and increased savings rates, reflecting an increased interest in gold as a means of long-term saving and investment. The Capital Market Authority continues to update regulatory controls to facilitate gold trading and ensure market transparency and protect the rights of participants.

In recent years, there has been a development in digital gold products that allow individuals to buy and sell gold without the need to physically possess it. Leading Saudi banks such as Al-Rajhi, Al-Ahli, and Riyadh have launched gold-designated savings programs, where customers can purchase a share of gold and benefit from price increases while retaining value in Saudi riyals. These accounts allow for the purchase of fractions of a gram and are characterized by ease of buying and selling through banking applications. Additionally, the Saudi Tadawul platform has launched gold contracts that provide high liquidity and easy trading, with the possibility of physical settlement upon request. These products have attracted a wider segment of investors, especially youth, and helped integrate gold into investment portfolios without the complexities of storage or transportation.

The gold market in Saudi Arabia enjoys a competitive advantage as pure gold used for jewelry and precious metals is exempt from value-added tax until 2023 and beyond. This exemption encourages local purchases and reduces investment costs compared to other countries that impose taxes on gold bars. However, some indirect costs such as service fees in stores, shipping costs when purchasing online, or bank transfer commissions may be added. The trading margin in Saudi Arabia is relatively low, ranging between 2-5 riyals per gram in most stores, while it increases during seasons or sudden demand spikes. It is important to continuously monitor tax and customs regulations in anticipation of any future regulatory updates.

The years 2024 and 2025 were marked by several significant events that impacted the gold market in Saudi Arabia. Internationally, the stabilization or reduction of interest rates by major central banks led to a decline in the dollar and increased the attractiveness of gold as a safe haven, raising prices to record levels (exceeding 2150 dollars per ounce globally). Locally, Saudi banks launched new digital services allowing the buying and selling of gold through banking applications, enhancing market liquidity and increasing the investor base. Jewelry companies also launched products with modern designs targeting youth. On the regulatory side, the Capital Market Authority and the central bank worked on updating gold trading regulations and facilitating the entry of foreign investors. On the other hand, rising oil prices and financial surpluses increased purchasing power and supported local demand for gold, especially during social and religious occasions.

Gold is considered a key element in asset allocation strategies for investors, due to its ability to reduce risks and diversify portfolios. The price of gold often moves inversely to stocks and bonds, making it a safe haven during times of economic crises or geopolitical tensions. In the Saudi market, investors tend to hold a portion of their wealth in gold, either through direct purchases or through banking products, to achieve a balance between return and security. Major financial institutions and pension funds use gold as a hedge against inflation and currency fluctuations. With the expansion of digital products, it has become easier to integrate gold into investment portfolios without the need for physical storage. It is always important to consult licensed financial experts to determine the optimal percentage of gold in the portfolio based on personal goals and financial situation.

The overall trend for the gold market in Saudi Arabia indicates continued growth and innovation in the coming years. With increasing awareness among individuals about the importance of gold as a savings and investment tool, and the expansion of digital and banking products, market liquidity and trading options are expected to increase. Government initiatives under Vision 2030 will continue to support a culture of saving and economic diversification, enhancing demand for gold as part of individuals' and institutions' financial security strategies. On the other hand, gold prices will remain linked to global fluctuations, requiring investors to continuously monitor economic and geopolitical developments. Finally, the market is expected to witness further regulatory updates and technological innovations that facilitate the buying and selling of gold, providing greater transparency and protection for participants.