Overview:
The Saudi Tadawul index climbed 1.13 percent to close at 11,078.68 points, gaining 124.22 points and marking its highest level in recent months. This rally occurred as the US dollar retreated to multi-month lows, gold prices reached their highest levels in over three months, and construction costs in Saudi Arabia rose 2.3 percent year-on-year due to increases in building materials, energy, and labor expenses.
Details:
The Tadawul index's ascent reflects broader market confidence, with 184 companies advancing during today's session and trading volume reaching 4.6 billion riyals. The index's return above the 11,000-point threshold follows recent volatility in international currency and commodity markets.
Concurrently, gold prices surged to their highest levels since mid-May, driven by weakening dollar sentiment and investor concerns regarding US inflation data and government debt levels. The metal is tracking its best monthly performance in 27 years, with spot prices approaching 4,670 dollars per ounce. This strength reflects a classic flight-to-safety pattern as investors seek alternatives to currency holdings amid macroeconomic uncertainty.
Construction cost inflation in Saudi Arabia accelerated during July 2026, with the official index climbing 2.3 percent compared to July 2025. Rising expenses for raw materials, electricity, water, and labor costs drove the increase. Separately, Australia reported an unemployment rate of 4.5 percent in July, up from 4.4 percent in June, signaling cooling labor market conditions in the Asia-Pacific region.
Outlook:
Market observers remain focused on upcoming US Federal Reserve monetary policy decisions and inflation reports, which are expected to influence currency valuations and precious metals demand globally. Saudi Arabia's investment opportunities—including 1,730 identified during the first half of 2026 spanning 15 sectors—continue to attract capital, with strategic bilateral economic dialogues, such as tomorrow's France-Saudi roundtable investment meeting in Paris, underscoring regional economic cooperation.