Gold prices fell in Saudi Arabia during early trading today, Thursday, to break a 3-day straight rally.
The price of a gram of 24 carat gold in the Kingdom decreased by 3 riyals, recording 223.53 riyals ($ 59.61), according to local media.
The 21-carat gold (the most traded in the Kingdom) was 195.59 riyals (52.16 dollars), and the 18-carat gram was 167.65 riyals (44.71 dollars).
The price of a gram of 14 carat gold decreased to 130.39 riyals ($ 34.77), and the price of a gram of 12 carat gold fell to 112.01 riyals ($ 29.85).
An ounce and a pound of gold
The price of an ounce was 6,952.50 riyals ($ 1,854), and for a pound of gold in Saudi Arabia (8 grams of 21 carat) it recorded 1564.70 riyals ($ 417.25).
Gold rises as the dollar awaits
Globally, gold rose yesterday, Wednesday, as the dollar and US Treasury bond yields declined, while the prospect of a massive financial stimulus in the United States boosted the demand for the yellow metal as a hedge against inflation.
Spot gold rose 0.1% to 1857.76 dollars an ounce by 0537 GMT yesterday, while US gold futures gained 0.8% to 1859.20 dollars.
“The big picture is still very positive for gold,” said Kyle Roda, an analyst at IG Markets. “With real returns still low and the dollar continuing its downward trajectory with the progress of the year, gold remains an attractive proposition.”
“But I would not be surprised if we saw some dips or a short-term downward trend in gold with the dollar market in balance,” he added.
And the US Treasury bond yields for 10 years fell from the highest level in ten months, pushing the dollar down and reducing the cost of gold for holders of the rest of the currencies.
Gold received more support from a plan by US President-elect Joe Biden to inject “trillions” of dollars in measures to mitigate the repercussions in the economy affected by the Corona virus. The plan will be unveiled on Thursday.
Global infections with the Coronavirus have increased to more than 91 million cases, while many countries apply more stringent restrictions to curb the spread, while vaccination rates remain disappointing expectations.
Federal Reserve officials expect the economy to recover strongly if the pace of vaccination accelerates, but that also raises questions about the central bank’s expectations for monetary policy.
Gold usually benefits from an easing of monetary policy.