JEDDAH: The gold market in Jeddah has entered a period of relative stability following weeks of heightened seasonal demand, with traders reporting a shift in buying patterns as consumers become more price-conscious.
“Demand remains strong during Hajj, especially from pilgrims purchasing gifts and small jewelry pieces, but we also see more selective buying compared to earlier peaks,” Mohammed Salem, a Jeddah-based gold trader, told Arab News. “Customers are comparing prices more carefully and asking more about making charges and purity.”
Gold prices in Saudi Arabia continue to reflect international market trends, but local seasonal cycles remain a key factor shaping retail demand.
Traders note that elevated price levels have added to the overall cost of purchases during the ongoing pilgrimage period, with 21-carat gold trading in the range of SR480–496 per gram ($128–$132) and 22-carat gold between SR520–547 per gram ($139–$146).
Although global gold prices have remained elevated in 2026, reaching around SR530–550 per gram for 21-carat gold, which remains the most commonly preferred category among customers, consumer activity has not declined.
Instead, buying patterns have shifted, with many consumers showing increased interest in higher-purity coins and bars.
Speaking to Arab News, Mohammed Akbar, who owns a gold shop at the Mahmoud Saeed gold market, said: “This year we have seen ups and downs in gold prices, including sudden spikes, which is why gold is increasingly seen as a financial asset as much as a cultural purchase. This has helped maintain steady baseline demand even outside peak seasons.”
He added: “Investment-driven buying has become more visible, particularly among younger consumers who view gold as a hedge against inflation and currency fluctuations.”
Retailers also point to making charges as a key factor influencing purchasing decisions, with costs varying depending on design complexity and shop location.
Some traders say customers are in a stronger position to negotiate as competition increases among retailers.
Market participants expect demand to remain stable in the coming weeks, with gradual activity likely to build again.
“I came to buy gold as a souvenir from here and for family members back in my country. It is a memorable part of our pilgrimage. I noticed that prices varied slightly from shop to shop, and we were able to negotiate to get a better deal,” said Hasan Raheem, who came from India to perform Hajj.
Badr Ali, a pilgrim from Kuwait, said: “Gold is always one of the first things people look to buy, whether from Makkah, Madinah, or Jeddah. It is more like a souvenir and a meaningful reminder of the journey.
“But since gold prices have increased, we pay more attention to making charges and different designs, including whether the pieces have stones or not, as prices vary accordingly.”
