Gold Price in Saudi Arabia: Comprehensive Analysis for 2024-2025

A gold ounce (Troy Ounce) is the standard weight unit for trading gold in global exchanges, equal to approximately 31.1035 grams of pure gold. This unit is used to measure and set international gold prices, giving it a central role in pricing commodities and precious metals. The gold ounce price is the most traded indicator in financial news and economics, often expressed in US dollars before being converted to local currencies like the Saudi Riyal. The significant importance of the gold ounce stems from gold's historical role as a store of value and a safe haven during economic crises, as well as its use in investment, industry, and jewelry making. In Saudi Arabia, the gold ounce holds a special place, not only due to the Gulf culture that values gold as a safe asset but also because of the development of the national mining sector and the state's interest in boosting gold production within the framework of Vision 2030.

According to the latest available data in 2025, the gold price in Saudi Arabia reached approximately 13,463.14 Saudi Riyals per ounce (24-carat), which is roughly equivalent to 3,590 US dollars at a fixed exchange rate (1 USD = 3.75 SAR). The price of 24-carat gold per gram was recorded at about 432.85 Riyals, while the price of a 100-gram gold bar was around 43,284.96 Riyals. These prices reflect the direct impact of the global gold price on the Saudi market due to the stability of the Riyal against the dollar. Gold prices exhibit relative fluctuations linked to global supply and demand factors, monetary policies, and international economic developments, but they are also affected by local production rates in Saudi Arabia and ongoing expansions in the mining sector.

The price of the gold ounce is determined by the interaction of several economic and financial factors, the most prominent of which are:
1. Global supply and demand: An increase in investment or industrial demand for gold raises prices, while a rise in global production or a decline in demand leads to a decrease in price.
2. Global interest rates: Higher interest rates often reduce the attractiveness of gold as it does not generate direct income, while lower interest rates support gold as a safe haven.
3. Inflation and monetary policies: During periods of inflation or currency weakness, investors turn to gold to protect the value of their wealth.
4. Geopolitical and financial crises: Wars, conflicts, and financial crises drive demand for gold as a safe haven.
5. Currency exchange rates: In Saudi Arabia, the stability of the Riyal against the dollar means that changes in the gold price in dollars directly reflect in the local market.
These factors collectively play a crucial role in determining the gold ounce price in the Saudi market, compelling investors and observers to continuously monitor global and local developments.

The gold sector is an important part of the Kingdom's strategy to diversify income sources away from oil, as part of Vision 2030. The Saudi Arabian Mining Company (Ma'aden) is the key player in gold production, aiming to increase its annual output to one million ounces by 2030 through new expansion projects such as the "Al-Rajoum" mine, for which a final investment decision was made in 2025 with funding exceeding 391 million Riyals. Ma'aden recorded a 47% growth in gold production during the second quarter of 2024 compared to the same period last year, reflecting an accelerated pace of investment in the sector. This growth in local production helps meet part of local demand and provides additional competitive opportunities in regional and global markets, enhancing Saudi Arabia's position as a regional hub for precious metals.

There is no direct trading market for gold as a commodity in the Saudi financial market (Tadawul); rather, the pricing of gold in the Kingdom primarily relies on the global price in US dollars, converted to Riyals at the fixed exchange rate. Local banks, jewelry shops, and investment companies price gold bars and coins based on the current global spot price, plus a profit margin or manufacturing fees depending on the product type. Some local websites also provide daily updates on gold prices, and interested parties can track price movements through global gold indicators like XAU/USD. This system ensures that the price of the gold ounce in Saudi Arabia moves in tandem with global movements, maintaining the competitiveness of the local market and accurately reflecting international price fluctuations.

The price of gold varies depending on the unit used for buying and selling. The ounce (31.1035 grams) is often used in international transactions or when purchasing large bars, while the gram is the most common unit for sales in local jewelry shops. Bars are sold in various weights (5 grams, 10 grams, 100 grams, etc.).
The price of gold per gram is typically calculated by dividing the price of the ounce by the number of grams (e.g., 13,463.14 Riyals ÷ 31.1 ≈ 432.85 Riyals). Larger bars tend to have a lower spread between the buying and selling price compared to jewelry or smaller pieces, making them more efficient for investors focused on investment value. Jewelry, on the other hand, may carry additional manufacturing and design fees.
These differences are important for consumers or investors in determining the most suitable option based on their purpose, whether for long-term storage, personal use, or quick trading.

The Saudi Arabian Mining Company (Ma'aden) is a leader in gold production and several other minerals in the Kingdom. Listed on the Saudi stock market under symbol 1211, it represents the primary investment and operational arm for local gold projects. Ma'aden is developing new mines and expanding existing ones, benefiting from government support and advanced infrastructure. The new "Al-Rajoum" mine project and the use of solar energy and water treatment technologies reflect the company's commitment to sustainability and increased productivity.
In addition to Ma'aden, there are local companies active in the gold and jewelry trade, but institutional investment in the mining sector remains concentrated around Ma'aden. These efforts contribute to enhancing the Saudi market's regional standing and providing diverse investment opportunities in the precious metals sector.

Gold competes in the Saudi market with several other investment assets such as stocks listed on Tadawul, government bonds and sukuk, real estate, and bank deposits. Each asset has its characteristics:
- Gold: Considered a safe haven during crises, it features high liquidity and protection against inflation, but does not generate periodic income.
- Stocks: Offer the potential for higher long-term returns but carry higher risks and volatility linked to company performance and the economy.
- Bonds and sukuk: Provide fixed returns with low risk, making them a conservative choice for investors.
- Real estate: Offers rental income and capital appreciation potential but is associated with lower liquidity and relatively high costs.
Some investors prefer to diversify their portfolios between gold, stocks, and real estate to achieve a balance between risk and return, especially amid local and global economic changes.

The years 2024 and 2025 witnessed sharp fluctuations in global gold prices, with prices ranging between 1900 and 2100 US dollars per ounce. Factors such as global inflation, shifts in US monetary policies, and geopolitical tensions in the Middle East contributed to pushing prices to high levels. In Saudi Arabia, due to the Riyal's peg to the dollar, these fluctuations directly reflected in local prices without significant intervention from exchange rate factors. Additionally, the growth in local gold production provided greater flexibility in the market, but did not insulate local gold prices from fundamental global influences. Observers of the gold ounce price in Saudi Arabia note that economic crises or changes in global monetary policy often reflect in local prices within a short timeframe.

Ma'aden announced in August 2025 a final investment decision to establish the "Al-Rajoum" gold mine with funding of 391.1 million Riyals, as part of a plan to raise gold production to one million ounces annually. This project relies on renewable energy (solar) and treated water, representing an advanced step toward environmental and economic sustainability. Alongside "Al-Rajoum," the company is working on several expansions in existing mines and building modern processing plants. These investments not only enhance local production growth but also increase sector efficiency and provide new job opportunities. They also contribute to increasing the mining sector's share of GDP and enhance Saudi Arabia's competitiveness in the precious metals industry at the regional level.

The Saudi economy has been characterized for decades by the stability of the Riyal pegged to the US dollar at a rate of 3.75 Riyals per dollar. This peg causes the local gold price to be directly and clearly affected by any change in the global gold price in dollars. If the global gold price rises, it immediately reflects on its price in Saudi Riyals, and vice versa. Changes in the dollar's price against other currencies do not directly affect the gold price within Saudi Arabia, providing the local market with a degree of stability and clarity in pricing. This peg also makes monitoring global markets essential for anyone tracking the gold ounce price in the Kingdom.

Gold holds a firm place in Saudi and Gulf culture, traditionally used in gifts and social occasions such as weddings and holidays. Gold is also viewed as a means of preserving savings and hedging against currency fluctuations and economic crises. Local demand is characterized by its flexibility, combining consumer use (jewelry) and investment (bars and gold coins). With the market's evolution and increased financial awareness, more Saudis are turning to purchase bars and gold coins for investment purposes. This stable local demand supports the Saudi gold market even during periods of global price fluctuations.

The gold ounce price in Saudi Arabia can be monitored in several ways:
- Specialized websites for gold prices (such as sa-goldprice.com) that provide daily updates in Saudi Riyals.
- Monitoring global prices through indicators like XAU/USD, where the local price can be calculated by multiplying the global price in dollars by the fixed exchange rate (3.75).
- Reports from mining companies like Ma'aden that publish production results and market forecasts.
- Economic analyses from financial news agencies like Argaam and Investing.com.
These tools allow consumers and investors to understand market movements accurately, as well as help them compare prices between different units (gram, ounce, bar) and choose the best time to buy or sell based on their financial goals.

In addition to gold, silver and platinum are precious metals that enjoy wide investment acceptance. Silver prices often move partially in parallel with gold, with differences in industrial use and volatility. Platinum is primarily used in industry and has a relatively narrower market than gold.
In recent years, cryptocurrencies (like Bitcoin) have emerged as competitors to gold in safe-haven roles, but they differ significantly in terms of risk and volatility. While gold is characterized by its long history and global liquidity, cryptocurrencies remain more risky and less stable. Nevertheless, gold remains the first choice for many investors seeking stability and hedging against traditional market crises.

When monitoring the gold ounce price or considering purchasing gold in Saudi Arabia, it is important to pay attention to the following:
- Follow official and accredited sources for price updates.
- Understand the differences between buying jewelry (which includes manufacturing fees) and bars (which have lower marginal costs).
- Evaluate the right time to buy based on economic analysis, not just rumors or short-term forecasts.
- Diversify between assets and not rely solely on gold as a store of value.
- Consult a licensed financial specialist before making any financial or investment decisions related to gold.
These guidelines help achieve financial goals and avoid risks associated with price fluctuations or misunderstandings about the nature of the gold market.