Gold Prices in Saudi Arabia 2025: Comprehensive Guide to Factors and Current

Gold is one of the oldest and most important metals that has attracted human interest, holding a special place in Saudi Arabia on both cultural and economic levels. In the Saudi market, gold stands out as a traditional ornament and a savings and investment tool that preserves value over time. Gold is often used in social occasions as wedding gifts and during holidays, viewed as a symbol of wealth and stability. The Kingdom retains part of its international reserves in gold through the Saudi Central Bank (SAMA), enhancing its position within the monetary stability framework. Despite its importance, gold is not traded as a direct financial asset in the Saudi stock market (Tadawul) but follows global market pricing, which is converted into Saudi Riyals. Local prices in Saudi Arabia primarily depend on the global price per ounce, with adjustments for purity differences (24, 21, 18) and manufacturing costs, making gold a commodity more affected by international factors than local ones. Nevertheless, local demand plays a significant role in determining daily price levels, especially during wedding seasons and holidays.

Gold prices are determined globally through major trading platforms such as COMEX in New York and the London Metal Exchange. The price is quoted in US dollars per ounce (Troy ounce = approximately 31.1 grams). Given the Saudi Riyal's peg to the dollar, any movement in the global price directly translates to the local market without significant exchange rate discrepancies. After establishing the global price per ounce, it is converted to Saudi Riyals, and then the price per gram is calculated based on the desired purity (24, 21, 18). Subsequently, manufacturing costs (conversion costs for jewelry) and jeweler commissions are added, leading to slight differences between official prices and retail prices. Prices are published daily in Saudi newspapers and websites, allowing consumers to track changes accurately. Notably, gold prices in Saudi Arabia exhibit relatively high transparency compared to other regional markets, thanks to regulatory oversight and real-time market updates.

Gold prices are influenced by several key global factors, including:
- US Dollar Exchange Rate: A strong dollar often puts downward pressure on gold prices as it raises costs for buyers outside the US. Conversely, a weak dollar enhances gold's appeal as a store of value.
- Global Interest Rates: Rising interest rates make yield-bearing assets (like bonds) more attractive, reducing demand for gold. Conversely, lower interest rates or accommodative monetary policies support gold.
- Inflation: Gold is traditionally seen as a safe haven during periods of high inflation, as investors turn to it to preserve purchasing power.
- Geopolitical Events and Turmoil: Wars, pandemics, and political crises drive investors toward gold as a safe asset.
- Central Bank Policies: Buying or selling gold by central banks as part of their reserves affects global supply and demand.
- Competition from Other Metals: Such as silver and platinum, which may influence investor preferences at certain times.
These factors interrelate and reflect on gold prices in Saudi Arabia due to the Riyal's peg to the dollar and direct exposure to international fluctuations.

Although gold prices in Saudi Arabia are primarily linked to the global market, several local factors influence final prices in the market:
- Seasonal Demand: Demand increases during wedding seasons, holidays, and Hajj and Umrah seasons, temporarily affecting local prices.
- Consumer Trends: During periods of economic stability, families may increase their purchases of gold for savings or adornment.
- Local Inflation Rates: Price inflation in Saudi Arabia may drive some towards investing in gold as a means of preserving value.
- Economic Policies: Any changes in import policies, taxes, or manufacturing fees may raise the final cost of gold.
- Local Mining Developments: Increased local gold production from companies like Ma'aden may contribute to relative price stability, although the larger impact remains from the global market.
- Jeweler Commissions: Variations in manufacturing costs among gold shops reflect on the final price to consumers.
It is worth noting that the impact of these local factors is often limited compared to global price fluctuations.

Gold prices in Saudi Arabia experienced significant developments during 2024 and 2025, rising from levels around 250-260 Riyals per gram of 21K mid-2024 to levels nearing 420-430 Riyals by October 2025. This surge resulted from:
- Rising global prices for the ounce exceeding 4000 dollars in October 2025.
- Continued global inflation and increasing geopolitical risks, enhancing demand for gold as a safe haven.
- Stability in the exchange rate of the Riyal against the dollar, allowing the rise in global prices to directly reflect in the local market.
- Increased local demand during holiday seasons and wedding occasions.
- Development of Saudi mining companies, with plans announced to increase gold production.
This substantial growth in gold prices over a short period posed challenges for consumers, prompting many to monitor prices daily to make buying or selling decisions.

Gold prices in Saudi Arabia heavily depend on the required purity, with purity determining the percentage of pure gold in the piece:
- 24K: Pure gold at 99.9%, commonly used in bullion.
- 21K: The most common in the Saudi jewelry market, containing 87.5% pure gold.
- 18K: Contains 75% gold, typically used in decorative pieces.
The price of each purity is calculated based on the price of pure gold multiplied by the purity percentage. For example, if the price of 24K gold is 400 Riyals per gram, the price of 21K gold would be approximately 350 Riyals. Additionally, manufacturing fees or costs vary from one jeweler to another, making the final price to consumers fluctuate based on purity and shop.

Gold has long been regarded as a safe haven during economic and financial turmoil. When investor confidence in fiat currencies declines or geopolitical risks rise, interest shifts toward gold as an asset that retains its value over the long term. In Saudi Arabia, this trend increased during 2024 and 2025 amid rising inflation rates and fluctuating global markets. Local investors, along with families, turned to purchasing bullion and gold coins as a hedge against inflation and to ensure financial stability. However, it should be noted that gold does not generate income or profits, and it may experience sharp fluctuations in the short term, necessitating caution and not relying solely on it as an investment option.

Gold is not available as a direct financial asset in the Saudi stock market, but there are several ways to invest in it within the banking and investment framework:
- Purchasing bullion and gold coins through local banks that offer dedicated products for this purpose.
- Investing in gold-linked funds or certificates that provide returns tied to global gold prices.
- Buying shares in mining companies such as the Saudi Arabian Mining Company (Ma'aden), which derives part of its revenues from gold mining operations.
- Turning to innovative banking products such as gold accounts or futures contracts.
It is important to understand that each investment tool carries its advantages and disadvantages, and the performance of mining companies, for example, is influenced by several factors beyond gold (such as copper or phosphate). Other asset classes (real estate, stocks, bonds) also compete with gold for attracting capital, especially during times of financial stability.

The Saudi mining sector is a significant driver in supporting the local gold market. The prominent company operating is the Saudi Arabian Mining Company (Ma'aden), listed on the stock market (symbol 1211). Ma'aden owns several gold mining projects, including the Safwa and Marsa gold mines. The company has announced expansion plans to increase gold production during 2025, aiming to support national reserves and diversify income sources. Local gold production indirectly affects prices by supporting supply, but it remains limited compared to global demand. Conversely, the presence of a national mining company provides local investors with exposure to the gold market through investments in related stocks or bonds. Additionally, under Vision 2030, the Kingdom seeks to enhance exploration and development of gold and precious metal mines, which may positively impact the local gold market in the future.

In addition to gold, other precious metals such as silver and platinum are considered alternative investments at certain times. Gold is characterized by its greater stability and lower susceptibility to industrial fluctuations compared to silver, which sees high demand from industrial sectors (electronics, renewable energy). In Saudi Arabia, gold remains the preferred choice for families and investors, but demand for silver has begun to increase in recent years, especially with rising gold prices. Platinum holds a smaller market share locally but attracts interest from global industries. The competition between these metals becomes evident during market fluctuations, where some investors may shift from gold to silver or vice versa based on expectations and relative performance of each metal.

Central bank policies play a crucial role in driving gold prices globally and locally. When the US Federal Reserve decides to raise interest rates, the dollar strengthens and the attractiveness of bonds increases, often leading to a decline in gold. Conversely, if rates are lowered or central banks adopt expansionary monetary policies, demand for gold increases. The Saudi Central Bank (SAMA) generally follows the Fed's policies due to the Riyal's peg to the dollar, making the impact of US interest rates direct on the Saudi market. On the other hand, central banks' purchases of gold as part of their reserves, as seen with China and Russia, support global prices. In Saudi Arabia, although gold reserves are relatively stable, any announcement of an increase may bolster local market sentiment.

Economic news in Saudi Arabia during 2025 focused on gold prices surpassing record levels, with the global price per ounce reaching around 4000 dollars. This historic rise directly reflected in the local market, where the price of 21K gold exceeded 420 Riyals at certain times. Reports were also published about increased demand for bullion and gold coins, especially amid fluctuating global markets and inflation expectations. Additionally, companies like Ma'aden announced plans to expand their investments in gold mining, which may support local production in the future. Local media highlighted expert advice to be cautious of price fluctuations and emphasized the importance of diversifying investments and not relying solely on gold. Regulatory bodies like SAMA monitor gold prices and sales methods in the local market to ensure consumer protection and enhance transparency.

Consumers and investors in Saudi Arabia can purchase gold through several channels:
- Jewelry Stores: To buy gold jewelry (with 21K and 18K being the most common), with prices set daily according to the market.
- Local Banks: Some banks offer gold bullion products in various weights or investment certificates linked to gold prices.
- Online Platforms: Approved websites and applications allow for the digital or physical buying and selling of gold.
- Investment Companies: Some companies offer investment funds or gold certificates.
- Investing in Company Shares: Such as shares of Ma'aden or global mining companies through international markets.
When purchasing, it is advisable to verify the purity, quality certificate, additional fees (manufacturing costs), and return policies. Buyers should also monitor gold prices daily to make the best decision.

In the Saudi market, gold competes with several asset classes, including real estate, stocks, and bonds. Gold is characterized as a tangible asset not directly linked to corporate results or economic sectors, making it a safe haven during crises. In contrast, stocks and real estate offer potential for higher long-term returns but are more exposed to fluctuations and risks. Government bonds are considered a relatively stable option but may yield lower returns than gold during periods of high inflation. In recent years, digital assets (such as Bitcoin) have emerged as competitors to gold, but they remain more volatile and less accepted in the Saudi market. It is important for investors to understand the characteristics of each asset class and to balance their portfolios to ensure stability and reduce risks.