When will the price of gold drop in Saudi Arabia? A question that many ask before buying or selling gold, and if you might want to know the answer to this question A question frequently asked by gold and jewelry store owners in Saudi Arabia. By following up, it is essential to learn more about the factors that affect the price of gold in Saudi Arabia. In this blog, we will help you, dear reader, learn about the times of gold price changes in Saudi Arabia, the most important factors affecting the price of gold, and why it is so popular Direct gold pricing This much importance?
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Factors affecting the price of gold in Saudi Arabia
To know when gold prices will fall and when they will rise in Saudi Arabia, it's important to understand that the price of gold in Saudi Arabia is affected by many variables. By tracking the movement of these factors, you'll likely learn about gold price trends.
Below, you'll learn about the factors that cause gold prices to fluctuate. In general, major political events and global economic changes are among the most important factors influencing gold prices in Saudi Arabia and around the world. However, the following will make things clearer for you:
Changing global events
The global price of gold is mainly affected by geopolitical changes Globally, this is reflected in the emergence of global conflicts and unrest. During periods of heightened geopolitical tensions, investors increasingly turn to gold to protect their funds and investments.
Ordinary individuals may resort to purchasing gold to preserve their savings and protect their value from any potential risk. When demand for gold increases, the price of gold in the market rises significantly.
Price change US dollar
The US dollar plays a key role in changing gold prices in the global market. When the US dollar's value and strength increase, gold prices decline in global markets. This is due to major investors turning to large banks and dollar-denominated investments, which generate steady monthly returns.
The opposite is true, of course. When the value of the US dollar declines, investors become more willing to buy and invest in gold, finding it to be a safe haven.
Slowing global economic growth
Slowing global economic growth causes a decline in demand for various commodities, including gold. Therefore, the strength of a country's economy affects the price of gold.
Central bank policies
The decisions of major central banks affect the price of gold in Saudi Arabia. For example, when it is decided that… Federal Reserve System When interest rates are lowered, global gold prices rise, and investors turn to gold to preserve the value of their money and investments.
In times when bank interest rates rise, a large number of individuals and investors sell gold coins and gold bars to convert them into money that they save in banks to earn higher interest every month. Investors transfer their money to investment vehicles that have higher and better returns, such as: Bank bonds ، This is why global gold prices are falling and the price of gold in Saudi Arabia is falling.
andCentral banks, particularly in emerging countries trying to reduce their reliance on the dollar, increase their gold reserves at certain times, particularly to protect the value of their currencies during periods of major political and economic volatility and to combat inflation, which causes global gold prices to rise.
The rise in global gold prices is due to a decrease in the amount of gold supply in the market. Naturally, when supply falls below demand, the price of gold automatically increases. For example, in 2018, both Russia and China significantly increased their gold reserves, which caused a global spike in gold prices. Therefore, central bank purchases are considered one of the most significant factors influencing the price of
gold in Saudi Arabia.
For more read about Economic factors that determine gold prices daily
Gold price forecast 2025
Globally, forecasts from economic analysts and financial institutions vary, but despite the disparities, a large percentage of forecasts indicate continued rises in gold prices in Saudi Arabia and globally. Below are the forecasts of major financial institutions:
- Gold price forecast in Saudi Arabia 2025 indicates that: Goldman Sachs A major American financial and investment institution had previously predicted that the price would reach ounce to $3,000 in 2025, but later issued other predictions, stating that the price of gold is likely to reach that percentage by mid-2026.
- Gold price forecast in Saudi Arabia 2025 City Group The US is forecasting that the price of an ounce will reach $3,000 in the near future, citing a group of central banks continuing to acquire gold reserves and ongoing global geopolitical tensions.
- Gold price forecast in Saudi Arabia 2025 JPMorgan Chase Bank She notes that the price of an ounce is expected to reach $2,600 by 2025, confirming that this rate is likely to increase early in the year.
Learn about Gold price forecast in Saudi Arabia
The price of gold in Saudi Arabia is linked to global gold prices, so it's expected that global gold markets will see similar trends. If the price of an ounce reaches $3,000, as most major financial institutions and economic analysts predict, this could cause the price of gold in Saudi Arabia to rise by up to 15% over its current price.
Did you know? How do global changes affect gold bullion prices in Saudi Arabia?
In conclusion to our blog, I hope the answer to the question of when the price of gold will drop in Saudi Arabia has become clear. In general, despite the efforts made to monitor global gold price indicators and forecasts and the price of gold in Saudi Arabia, the price of gold in Saudi Arabia remains always subject to fluctuations due to economic and geopolitical changes. Therefore, before purchasing gold coins or gold bars or taking the step of investing in gold, it is necessary to follow global developments and factors that affect the price of gold and its future trends. However, if you are one of the owners of gold and jewelry stores in Saudi Arabia in general, we advise you to use Qarat is the best gold shop management software in Saudi Arabia. Which guarantees you:
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- Easy to use, supports Arabic, and does not require prior technical or programming experience.
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