Gold prices in Saudi Arabia rose on Wednesday, according to FXStreet’s data. The price of gold hit 586.10 Saudi Riyals per gram, up from 573.49 SAR the day before. The cost for a tola of gold went up to 6,836.16 SAR from 6,689.08 SAR the previous day. Here are other key prices: 5,861.00 SAR for 10 grams and 18,229.27 SAR for a troy ounce.

Price Calculation Methodology

FXStreet calculates these prices by converting international rates into local currency, updating them to reflect market conditions. The prices are for reference only, and local variations may occur. Gold is often seen as a good store of value and a means of exchange, particularly during economic uncertainty. It is favored as a hedge against inflation and currency decline because it isn’t tied to any specific government or issuer. Central banks are significant buyers of gold. In 2022, they increased their reserves by 1,136 tonnes. Countries like China, India, and Turkey continue to grow their gold stockpiles. Gold prices usually decrease when the US dollar and US Treasuries strengthen. Additionally, geopolitical tensions and interest rates can impact gold prices.

Global Economic Outlook

Gold’s rise to SAR 586.10 per gram indicates a shift towards safe-haven assets. This change points to increasing concerns about the global economy in the first half of 2026. Traders should recognize this as part of a broader trend rather than just a daily occurrence. This trend is largely driven by expectations that the US Federal Reserve will start lowering interest rates by the second quarter. After a prolonged period of persistent core inflation in 2025, recent data indicates a cooling trend that might allow the central bank to ease its policies. A weaker US dollar, which has fallen nearly 2% against other currencies since the start of the year, could also boost gold prices. Strong support from institutional investors plays a significant role as well. Following central banks’ record purchases in 2022, recent data shows this trend continued into 2025, with emerging market banks adding around 900 tonnes to their reserves. This steady demand helps maintain a solid price floor for gold and limits potential losses for the precious metal. For derivative traders, this market environment suggests that taking long positions through call options on gold futures or major gold ETFs could be a wise strategy. Purchasing calls with expirations of three to six months allows traders to benefit from expected price increases due to shifts in monetary policy. A bull call spread could also be employed to reduce the entry cost while managing risk. Create your live VT Markets account and start trading now.

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