Gold prices in Saudi Arabia remained stable on Wednesday. The price per gram was 497.36 Saudi Riyals (SAR), a slight increase from 497.31 SAR the day before. The cost for Gold per tola was stable at SAR 5,801.16, compared to 5,800.55 SAR the previous day. FXStreet calculates Gold prices in Saudi Arabia by converting global prices into local currency. These prices are updated daily and may differ from actual local rates. Gold is considered a traditional safe investment and exchange medium, often viewed as a safe-haven asset and a protection against inflation, not tied to any government.

Central Bank Gold Reserves

Central banks hold the most Gold reserves to enhance economic confidence and diversify their portfolios. In 2022, they purchased 1,136 tonnes of gold valued at around $70 billion. Countries like China, India, and Turkey have been rapidly increasing their gold holdings. Various factors, including geopolitical tensions, recession fears, and interest rate changes, influence Gold prices. Typically, Gold prices rise when interest rates are low and are influenced by the strength of the US Dollar. When the Dollar weakens, Gold prices often increase. As of October 22, 2025, Gold prices are stable around SAR 497. This period of low volatility indicates a potential buildup before a significant price movement. This is especially relevant as global inflation numbers for September 2025 remain high, increasing gold’s appeal as a hedge against inflation. We think the US Federal Reserve is nearing the end of its rate hikes, with many anticipating a pause in the first quarter of 2026. The situation in late 2023 showed that a weaker US Dollar led to a rise in Gold prices. This trend makes long-dated call options an appealing choice for traders expecting price increases in the coming months.

Geopolitical Tensions and Market Strategies

Ongoing geopolitical tensions and mild recession fears heading into 2026 continue to support Gold’s role as a safe-haven investment. Gold-backed ETFs have seen steady inflows, totaling over $3 billion globally in the past month. Traders should take this strong demand into account when planning their strategies, as it provides a solid price support. Central bank demand is a significant, non-speculative force. New data from the World Gold Council reveals that banks, especially in Asia, purchased an additional 310 tonnes of Gold in the third quarter of 2025. This sustained buying trend follows aggressive purchases from 2022 to 2024. Such consistent demand makes selling cash-secured puts on gold futures a smart strategy to collect premiums while defining a good entry point. Implied volatility in gold options has been rising, with the GVZ index climbing nearly 15% in the last four weeks. This suggests the market expects larger price swings before the year ends. For traders unsure of the price direction but anticipating a breakout, employing straddles or strangles could be an effective way to capitalize on increased volatility. Create your live VT Markets account and start trading now.

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