Gold Prices Stabilize in Saudi Arabia Amidst Economic Uncertainty
RIYADH - Gold prices in Saudi Arabia stabilized at 446 riyals per gram following a day of important volatility, sparking concerns among investors about potential economic headwinds.The temporary calm comes after sharp declines, leaving many wondering if this pause signals a more substantial downturn. Experts caution that delayed investment decisions could result in substantial financial losses.
the Saudi gold market experienced dramatic price swings today, with a difference of 126.75 riyals between the highest and lowest calibers. 24-karat gold reached a peak of 507.25 riyals – equivalent to a full day’s wage for many Saudi workers. “I lost 500 riyals of the value of my gold bracelets in one day, and now I don’t know whether to sell or wait,” said Umm Muhammad, a resident of Riyadh, reflecting the anxiety felt by numerous Saudi families who view gold as a secure investment.
Financial analyst D. Abdullah Al-Suwailem emphasized the precarious nature of the current stability. “This stability is temporary and we expect more violent fluctuations in the coming weeks, as gold prices are like a thermometer for the global economy,” he stated. He cited fluctuations in the US dollar and central bank monetary policies as key influencing factors, making accurate price prediction exceptionally difficult.
The market instability is impacting both investors and consumers. Ahmed, a Jeddah jewelry store owner, reported customer hesitancy and postponed wedding band purchases.Investment advisors recommend limiting gold investments to no more than 10% of total savings, warning against speculative risks. Though, Khaled Al-Otaibi, who recently realized a 15% profit through strategic investment, believes a window of prospect exists for calculated purchases during periods of stability.
The central question remains: will gold prices rebound, or is a further decline imminent? The answer could substantially impact the financial well-being of millions.
