Gold Prices Surge in Saudi Arabia, Exceeding 12,000 Riyals Per Ounce
RIYADH – Gold prices in Saudi Arabia have reached unprecedented levels, breaking the 12,000 riyal barrier per ounce – a figure exceeding the average monthly salary of an employee for two months. Experts are forecasting continued volatility in the coming hours, potentially reshaping investment strategies across the Kingdom.
The dramatic increase is causing shockwaves among consumers and investors. Jewelers report a significant drop in sales as customers grapple with the soaring costs. The price difference between 24-carat gold (492 riyals) and lower carats is now 255.25 riyals per gram, equivalent to the cost of a high-end smartphone.
“I saw dozens of customers entering my shop this morning with shocked faces, counting and recalculating, then leaving silently without buying anything,” recounts Muhammad Al-balawi, a jeweler in Riyadh.
The current surge echoes similar market behaviour during the 2008 global financial crisis, when gold was sought as a safe haven asset. Today’s price increases are fueled by escalating geopolitical tensions and fluctuations in the US dollar. “The current situation reminds me of difficult days that passed in global markets,” explains Dr. Abdullah Al-Harbi,an economic analyst specializing in precious metals,”But this time the rises are faster and the fluctuations are more violent.”
For many Saudi families, the dream of purchasing gold is becoming increasingly unattainable. Sarah’s mother, a resident of Riyadh’s Malaz neighborhood, expresses her frustration: ”As I save more money, I find that the price has risen more than I have saved.”
Though, the price hike is benefiting some investors. Khaled Al-Mutairi, a young investor who recently purchased a substantial amount of gold, is already seeing returns. ”I expected this rise based on global market indicators,” he stated, “But I didn’t expect it to happen so quickly.”
The rapid escalation in gold prices raises a critical question for investors: will they capitalize on the opportunity or become casualties of this unfolding market shift?
