Gold prices in Saudi Arabia fell on Tuesday, according to FXStreet data.
Gold traded at 318.98 Saudi riyals (SAR) per gram, down from Monday’s price of SAR 319.80.
The gold price fell to SAR 3,720.47 per tola from SAR 3,730.13 per tola a day earlier.
| Unit measure | Gold price in SAR |
|---|---|
| 1 gram | 318.98 |
| 10 grams | 3189.71 |
| Tola | 3720.47 |
| Troy ounce | 9921.26 |
FXStreet calculates gold prices in Saudi Arabia by adjusting international prices (USD/SAR) to local currency and units of measurement. Prices are updated daily based on market rates prevailing at the time of publication. Prices are for information purposes only and local rates may vary slightly.
Gold FAQs
Gold has played a key role in human history as it has been widely used as a store of value and a medium of exchange. Nowadays, beyond its luster and utilize in jewelry, the precious metal is widely viewed as a safe-haven asset, meaning it is considered a good investment in turbulent times. Gold is also widely seen as a hedge against inflation and currency depreciation because it is not tied to any particular issuer or government.
Central banks are the largest holders of gold. To support their currencies in turbulent times, central banks typically diversify their reserves and purchase gold to improve the perceived strength of the economy and currency. High gold reserves may provide a source of confidence in the country’s solvency. According to data from the World Gold Council, central banks added 1,136 tons of gold to their reserves in 2022, worth about $70 billion. This is the highest annual purchase since registration began. Central banks in emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.
Gold has an inverse correlation with the US dollar and US treasury bonds, which are both major reserve assets and safe and sound haven assets. When the dollar depreciates, gold tends to rise, allowing investors and central banks to diversify their holdings in turbulent times. Gold is also inversely correlated with risky assets. A rally in the stock market tends to weaken the price of gold, while sell-offs in riskier markets support the precious metal.
The price may change due to many factors. Geopolitical instability or fear of a deep recession can quickly cause gold prices to rise due to its safe-haven status. Gold, as a non-yielding asset, tends to rise at lower interest rates, while the higher cost of money tends to weigh on the yellow metal. Despite this, most of the movements depend on the behavior of the US dollar (USD) when the asset is priced in dollars (XAU/USD). A mighty dollar tends to keep the gold price in check, while a weaker dollar will likely cause gold prices to rise.
(An automation tool was used to create this post.)
