Overview:
Saudi commodity markets displayed mixed signals this week as crude oil prices surged above $117 per barrel for the first time since March, while gold retreated for a fourth consecutive session amid rising energy costs and inflation concerns. The national property price index climbed 1.2 percent in the third quarter of 2026, and construction costs increased 2.2 percent year-on-year in September. Global equities showed volatility, with the TASI index closing lower and European markets declining, while the Japanese yen strengthened on safe-haven demand.
Details:
Brent crude oil jumped approximately 3 percent to surpass the $117-per-barrel level, extending gains into a third consecutive week amid escalating tensions in energy markets. The surge reflected concerns over potential supply disruptions in global oil infrastructure. Meanwhile, gold prices declined for the fourth consecutive session as higher energy costs and stronger-than-expected U.S. economic data diminished the metal's appeal as a hedge against inflation. Japanese core consumer inflation exceeded the Bank of Japan's 2 percent target for the first time in nine months, prompting market adjustments. The Japanese yen reached its highest level in more than one month, supported by increased demand for safe-haven currencies.
On the domestic front, the General Authority for Statistics reported property prices in the Kingdom rising 1.2 percent in the third quarter of 2026 compared to the corresponding period last year, while construction cost indices increased 2.2 percent for September against September 2025. The National Center for Debt Management closed October's local sukuk issuance with subscriptions totaling 6.749 billion Saudi riyals. Fitch Ratings noted a sustained increase in Saudi bank investments in sustainable-qualified projects since 2020.
The Saudi primary equity index (TASI) closed lower by 230.76 points at 9,695.86 points on trading volumes of 4.9 billion riyals, reflecting broader regional market pressure.
Outlook:
Investors are monitoring crude oil supply dynamics and geopolitical developments that could trigger further price volatility. Attention remains focused on U.S. Federal Reserve policy signals regarding interest rates, which will influence both precious metals demand and global equity performance in coming sessions.