Gold prices in Saudi Arabia fell on Monday, according to FXStreet data. The price dropped to 544.27 Saudi Riyals (SAR) per gram from SAR 546.41 on Friday. For one tola of gold, the price decreased from SAR 6,373.19 to SAR 6,348.17. The cost for 10 grams of gold was SAR 5,442.65, and a Troy ounce was priced at SAR 16,928.90. FXStreet updates these prices daily, adjusting international rates to the local currency using USD/SAR values. There might be slight variations in local markets.

Store Of Value And A Hedge Against Volatility

Gold acts as a store of value and protects against market fluctuations and inflation. Central banks, the biggest gold holders, bought 1,136 tonnes worth $70 billion in 2022—setting a record for annual purchases. Countries like China, India, and Turkey are increasing their gold reserves significantly. Gold prices can change due to geopolitical events and economic factors. Typically, lower interest rates lead to higher gold prices, while higher rates can bring them down. Additionally, a strong US Dollar negatively affects gold prices globally. We are currently seeing a slight drop in gold prices, which seems to be a healthy correction after recent record highs. Profit-taking is normal as we near the end of the year. The key question is whether this decline is temporary or the start of a larger downward trend. Central bank purchases have remained strong throughout 2025, following the significant buying seen in 2022. Recent World Gold Council data for the third quarter of 2025 revealed that global central banks added another 337 tonnes to their reserves. This ongoing demand from these institutions suggests a solid price floor for gold.

Impact Of US Inflation And Trading Opportunities

The latest US inflation data for November 2025 showed a slightly lower-than-expected rate of 2.8%. This raises the chances that the Federal Reserve may pause rate hikes in early 2026. A weaker US Dollar typically boosts gold’s appeal, as it has historically helped elevate gold prices. For derivative traders, this price dip offers a chance to buy call options expiring in March 2026 at a lower premium. Implied volatility has dropped from its recent highs, making these options more budget-friendly. This strategy allows for potential gains while limiting possible losses. With equity markets showing signs of slowing down after a strong 2025, investors may turn to safe-haven assets in the new year. When reviewing futures contracts, the $2,280 per ounce level, which was resistance in October 2025, is now a key support area. We should monitor whether prices remain above this critical level. Create your live VT Markets account and start trading now.

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