Saudi Arabia: Saudi Arabia’s demand for gold bars and coins rose 9 percent in 2024 to 15.4 tonnes, reaffirming the Kingdom’s position as the Gulf region’s largest investment market for the precious metal, a new report showed. 

The World Gold Council’s Gold Demand Trends Full Year 2024 report attributed the increase to heightened investor appetite for safe-haven assets amid economic uncertainty, despite a slowdown in jewelry purchases. 

The document highlighted that Saudi Arabia’s performance in the gold market aligns with a broader regional trend, with countries like the UAE and Kuwait also showing strong growth. 

Saudi investors responded to fluctuations in gold prices, taking advantage of opportunities in the market. 

In particular, demand for bars surged, while the sale of coins saw a slight decrease. The report noted that this robust performance was not limited to the first three quarters of 2024 but continued in the final quarter, with a 20 percent year-on-year increase in bar and coin purchases to 4.3 tonnes. 

Despite the strong growth in investment demand, gold jewelry consumption in the Kingdom experienced a decline, falling by 8 percent to 35 tonnes in 2024. 

This decrease reflects the impact of high gold prices, which have limited the purchasing power of consumers. 

The report indicated that the demand for gold jewelry saw a slight recovery in the fourth quarter of 2024, driven by a price dip that prompted buying. 

The World Gold Council also observed a regional trend where gold remained a key asset class for investors, particularly in the face of rising inflation and geopolitical instability. 

As the global gold price reached record highs in 2024, Saudi investors increasingly turned to gold as a hedge against these challenges. 

The UAE also registered an increase in bar and coin demand, rising 15 percent annually to 13.3 tonnes in 2024. Fourth-quarter demand in the UAE climbed to 3.4 tonnes, up from 3.1 tonnes a year earlier. 

However, jewelry consumption in the Emirates declined 13 percent over the year, totaling 34.7 tonnes, reflecting similar affordability challenges seen across the region. 

Looking ahead, the World Gold Council expects the Kingdom’s gold market to remain resilient, supported by strong investor interest in gold and its role as a hedge in uncertain times. 

The report came as gold extended its record run on Tuesday, breaching $3,500 per ounce, as weakness in the dollar, US President Donald Trump’s attacks on the Federal Reserve and trade war fears boosted demand for the safe-haven asset.