When the world was hit by the Coronavirus (Covid-19) in 2020, its impact was not limited to health and the economy, but it also triggered a historic surge in gold prices. The price of gold per ounce globally exceeded the 2000 USD barrier for the first time, which directly reflected on the Saudi market with an increase of more than 25% for a 24K gold ounce.

This incident clearly revealed how global events can change the value of gold overnight, and made knowing how to calculate the price of a gold ounce an indispensable tool for every smart investor or buyer. In this comprehensive guide from Gold.sa, we explain the calculation method, the influencing factors, and why investing in it is safe—helping you make smart investment decisions without relying on luck alone.

How to Calculate the Price of a Gold Ounce in Saudi Arabia

To calculate the price of a gold ounce in Saudi Arabia, you must first know the global price of a gold ounce in USD, then multiply it by the exchange rate of the dollar against the Saudi riyal. Gold is traded globally by the ounce, which weighs 31.1035 grams of pure gold (24K). Here is the formula for calculating the price of a gold ounce in SAR:

Price of gold ounce in SAR = Price of gold ounce in USD × Exchange rate in SAR

Practical example: If the global price of a gold ounce is 1900 USD and the dollar exchange rate against the Saudi riyal is 3.75, then the price of a gold ounce in Saudi Arabia is:

Price of gold ounce in SAR = 1900 × 3.75 = 7125 SAR

Factors Affecting the Price of a Gold Ounce in Saudi Arabia

The main factors influencing the value of an ounce are supply and demand, the U.S. dollar price, economic conditions, geopolitical tensions, and local policies such as taxes and incentives. Each of these factors can raise or lower the price. For example, during global inflation, investors turn to gold as a safe haven to preserve wealth, which raises the price of a gold ounce.

Let’s look at each factor more clearly:

1- Global supply and demand: When demand for gold increases from investors or the jewelry sector, the price of the ounce rises. For example, demand for gold in Saudi Arabia increases during wedding and holiday seasons (June and July), raising the local ounce price.

2- U.S. do