Gold prices in Saudi Arabia went up on Monday, according to FXStreet data. The price per gram rose to 604.53 Saudi Riyals (SAR) from 597.25 SAR on Friday.
The cost per tola increased to SAR 7,051.11 from SAR 6,966.25. The price for a troy ounce was recorded at SAR 18,802.91.
FXStreet Data Update
FXStreet updates international gold prices (USD/SAR) to match the local currency and measurement units. Prices refresh daily but are for reference only, since local rates may vary slightly.
Gold is a commonly used store of value and a safe investment. It is considered a good choice during uncertain times and serves as protection against inflation and currency loss.
Central banks hold the most gold, adding 1,136 tonnes worth about $70 billion to their reserves in 2022. The largest purchases came from China, India, and Turkey.
Gold tends to move opposite to the US Dollar and US Treasuries. Typically, gold prices rise when the Dollar weakens and drop during stock market upswings.
The price of gold is affected by geopolitical issues, interest rates, and the strength of the US Dollar. Lower interest rates can drive gold prices up, while a strong Dollar can keep them down.
Factors Influencing Gold Prices
Gold is gaining strength, showing its role as a safe investment during tough times. The increased market volatility since the start of this year is drawing attention to this trend. Traders should see this as a sign that market sentiment may be shifting away from riskier assets.
Gold prices are highly tied to interest rates since it does not provide any yield. Recent comments from the Federal Reserve in late January 2026 suggested a potential rate cut in the second quarter due to slowing manufacturing data. A forecast for lower interest rates makes holding gold more appealing in the weeks ahead.
We also need to factor in gold’s inverse relationship with the US Dollar. The Dollar Index (DXY) has fallen over 3% since the new year, which usually helps gold prices. A weaker Dollar means gold is cheaper for buyers using other currencies, often leading to higher global demand.
Central bank demand offers solid support for the gold market. After historic purchases in 2022, central banks continued to buy heavily through 2025, adding nearly 950 tonnes to their reserves. This ongoing trend of moving away from the Dollar shows strong interest from institutions.
Given that major stock indices have become more volatile and the VIX volatility index recently reached 20, gold’s inverse relationship with risk assets is essential. Derivative traders might want to adopt strategies that take advantage of this situation, such as buying call options on gold futures or ETFs, allowing them to benefit from possible price increases with defined risk. This can also act as a hedge against further weakness in the stock market.
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