In our culture, gold is bought for more than just adornment: it is a gift for special occasions, part of a dowry, and a form of savings to turn to in times of need. That is why I pay particular attention to gold demand figures in the Kingdom. They tell us not only about the metals market, but also about household finances and purchasing power.

The latest figures reveal a contradiction worth pausing over: demand is falling, yet the Kingdom’s share is growing.

What do the figures say?

According to the World Gold Council’s Gold Demand Trends report for the third quarter of 2026, demand for gold jewelry in the Kingdom fell 12% year over year to 8.2 tonnes, compared with 9.3 tonnes in the same quarter last year.

But the decline was much milder than across the region, where demand fell 22% to 26.2 tonnes, from 33.4 tonnes a year earlier. As a result, the Kingdom’s share of regional demand rose to around 31%, up from 28%, keeping it the region’s largest market for gold jewelry.

In other markets, demand fell 29% in the UAE to 4.5 tonnes, 29% in Kuwait to 1.7 tonnes, and 12% in Egypt to 3.8 tonnes. Turkey held up relatively well, with a decline of just 4% to 7 tonnes.

How is gold demand measured?

The World Gold Council tracks demand across several categories, most notably gold jewelry, bars and coins bought for investment, central bank purchases, and technological uses.

Demand is measured in two ways: by weight, or the number of tonnes sold, and by value, or how much buyers actually paid. The difference between the two is key to understanding what is happening in the gold market today.

Why did demand fall?

The first reason is price. The average gold price during the quarter reached $4,262 per ounce, up 23% from last year. That works out to around 514 riyals per gram of pure 24-karat gold, before making charges and tax.

The report also points to pressure on household purchasing power and ongoing geopolitical uncertainty, which it links to lower tourist numbers in the region. In Egypt, reduced subsidies, persistent inflation, and higher interest rates added to the pressure.

Why has the Saudi market held up relatively well?

Aseel Al-Aranki, head of financial market analysis at CG Invest, sums it up by noting that the Kingdom’s decline was roughly half that of the region, and that the relative stability of the region’s largest market helped soften the regional downturn. In July, Andrew Naylor, the World Gold Council’s head of the Middle East and public policy, had forecast that the Kingdom would outperform regional markets, supported by a shift toward investment.

But Al-Aranki cautions that this resilience is a year-over-year comparison; it does not mean the market is recovering. Quarterly figures show a clear downward trend: from 12.7 tonnes in the first quarter to 10.3 tonnes in the second, then 8.2 tonnes in the third. She expects the pattern of smaller purchases and lower volumes to continue, even as spending holds up.

What about bars and coins?

Investment demand was not spared the downturn: demand for bars and coins in the Kingdom fell 9% to 4.1 tonnes, driven by profit-taking and investors anticipating an interest rate hike in September—the first since 2023. Across the region, investment demand fell 24%.

The global picture

This phenomenon is not unique to our region. Globally, demand for gold jewelry fell 17% to 313 tonnes, its weakest third quarter since records began in 2000 and the thirteenth consecutive quarterly decline.

But notably, the value of this demand rose 2% to $43 billion. In other words, the world bought less gold and paid more for it. The World Gold Council expects global demand for jewelry to fall again in the fourth quarter.

Something striking happens in the gold market when prices rise: people do not stop buying; they change how they buy—a lighter piece, or a purchase put off until later.

That is why the number of tonnes sold may not be the best measure of the health of the gold market.

In my view, a more accurate picture comes from looking at weight and value together: weight tells us how much gold has changed hands, while value tells us how much people were willing to pay. When the former falls and the latter holds up, it does not mean people have lost interest in gold; it means gold has become too expensive to buy in the same quantities.

That is why I believe the Saudi market’s relative resilience deserves to be examined from an economic perspective—not as a recovery, as Al-Aranki cautions, nor as an exception to the laws of pricing, but as a window onto a broader shift in our relationship with gold:

from measuring gold by weight to measuring it by value.

Disclaimer: This article is for informational purposes. Its aim is to explain the news in clear, accessible language, and it should not be considered investment advice. The information presented is drawn from published news sources and has been adapted and simplified; it does not represent an official position or statement by any entity. This information may be updated after publication, so readers are advised to consult official sources for full details.