Gold prices in Saudi Arabia fell on Thursday. The price per gram decreased to 578.55 Saudi Riyals (SAR) from 581.94 SAR on Wednesday. The price for one tola of gold dropped to 6,748.10 SAR from 6,787.61 SAR the day before. According to FXStreet data, a Troy Ounce of gold is now worth 17,994.52 SAR. Ten grams of gold are priced at 5,785.51 SAR. FXStreet calculates these prices by converting international rates (USD/SAR) to local currency and units. These rates are updated daily, although they may differ slightly from local prices.

The Role of Gold

Gold has been valued for centuries as both currency and a safe investment. It acts as a safeguard against inflation and currency decline. Central banks are among the major holders of gold, having bought 1,136 tonnes in 2022—the highest annual purchase since records began. Countries like China, India, and Turkey are increasing their gold reserves. Gold prices usually move in the opposite direction of the US Dollar and US Treasuries. Economic instability or falling interest rates often leads to rising gold prices, while a strong US Dollar can keep them lower. Geopolitical tensions and fears of a recession can also affect gold prices. Currently, gold prices are experiencing a slight dip, but this should not overshadow the larger trends. The value of gold fluctuates less because of daily changes and more due to its connection with the US Dollar and interest rates. As a non-yielding asset, gold’s direction is influenced by key central bank policies. In 2025, we saw the Federal Reserve keep interest rates steady to manage inflation, which helped maintain a strong dollar. Now, with US inflation falling to 2.8% in late 2025, markets are anticipating possible rate cuts later this year. This has led to a softer US Dollar Index (DXY), currently around 101.5—a situation that usually supports gold prices.

Central Bank Strategy

Demand from central banks also plays a crucial role in stabilizing gold prices. After record purchases in the early 2020s, central banks continued to buy gold, adding over 800 tonnes to their reserves in 2025, according to World Gold Council data. This steady buying from emerging economies indicates a move to diversify away from the dollar and provides strong support for gold. The combination of a potentially weaker dollar and ongoing central bank demand makes a positive case for gold. Derivative traders might find this an excellent time to explore call options to benefit from potential price increases with limited risk. The implied volatility in options suggests that the market expects price changes in the coming months. With ongoing worries about a global economic slowdown after 2024-2025’s aggressive rate hikes, gold’s safe-haven status is particularly important. Traders are increasingly using gold futures to protect their equity portfolios against potential downturns. This reverse correlation has been especially reliable in past market cycles. However, we need to pay attention to upcoming economic data, especially the next US jobs report. A surprisingly strong report could delay expected rate cuts and lead to a short-term drop in gold prices. This suggests that strategies like bull call spreads could be wise, as they profit from price increases while minimizing losses if the market reverses unexpectedly. Create your live VT Markets account and start trading now.

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