SAUDI ARABIA: Despite gold prices hitting all-time highs, Saudi buyers still make purchases. Despite a 21% decline in worldwide demand, the Kingdom’s demand for gold jewellery increased 35% year over year in the first quarter of 2025, according to the World Gold Council. Due to aggressive central bank purchasing, inflation concerns, and geopolitical tensions, gold prices surged globally in April, breaking $3,500 per ounce, up from about $2,370 a year earlier.
Central bank buying is the primary cause of this sharp rise in the bullion’s price,” Century Financial’s head investment officer Vijay Valecha told Arab News. As culture and technology change, employees resist price increases.
However, Saudi Arabia’s long-standing gold culture is still evident despite the skyrocketing price; in the first quarter, buyers bought 11.5 tonnes of gold jewellery, up from 8.5 tonnes the previous year. This accomplishment shows Saudi consumers’ strong demand and purchasing power, even in the face of a 34 percent price increase in early 2025,” Valecha added.
In the Kingdom, gold symbolises custom, ornamentation, generational riches, and being a monetary item. Saudi consumers are demonstrating resilience in the face of severe drops in demand in other regional markets, such as the UAE and Kuwait, for anything from bullion bars to simple 18-carat jewellery.
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