Gold prices in Saudi Arabia rose on Monday, according to FXStreet data. The price for gold reached 611.22 Saudi Riyals (SAR) per gram, up from SAR 600.56 on Friday. Gold per tola increased to SAR 7,129.12 from SAR 7,004.76 the previous Friday. FXStreet updates these gold prices by converting international USD prices to SAR. Although these prices are updated daily based on market rates at the time of publication, they might vary slightly from local prices. Gold is often seen as a stable asset during uncertain economic times and is used to protect against inflation and currency decline.

Central Banks and the US Dollar

Central banks own the largest amounts of gold. In 2022, they purchased a significant 1,136 tonnes worth around $70 billion. Gold prices usually rise when the US Dollar falls. Economic instability and changes in interest rates also affect gold prices. A strong US Dollar tends to lower gold prices, while a weak Dollar usually increases them. Currently, gold is continuing its upward trend, recently surpassing the $5,000 mark. This is happening as the US Dollar weakens against other major currencies. The expected rise in gold due to the Dollar’s decline is occurring as anticipated. This trend is further supported by strong buying from central banks throughout 2025. Reports from the World Gold Council showed that in the fourth quarter of 2025, central banks added another 350 tonnes to their reserves, making it the sixth straight quarter of heavy accumulation. This ongoing demand from official sources provides strong support for prices and indicates a long-term shift away from dollar-based assets. Geopolitical tensions, like potential US government shutdowns and trade disputes over Greenland, are driving investors toward safe assets like gold. For traders in derivatives, this suggests that taking long positions on gold futures or buying call options on gold ETFs could be wise in the coming weeks. Since volatility is high, managing costs with strategies like bull call spreads might be beneficial while pursuing further gains.

Federal Reserve and Interest Rates

In 2025, the Federal Reserve shifted away from aggressive interest rate hikes, indicating that rates had peaked. This change has positively affected gold prices, as lower rates reduce the opportunity cost of holding gold, which doesn’t yield interest. If the market expects rates to remain steady or decline, investors are likely to invest more in gold. Create your live VT Markets account and start trading now.

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