Gold prices in Saudi Arabia stayed about the same on Monday, based on FXStreet data. The price per gram was -0.03 Saudi Riyals, matching Friday’s rate. Likewise, the price for a tola remained steady at SAR -0.37. FXStreet calculates this information by converting international gold prices into Saudi currency and updating it with the current market rates. For 10 grams, gold was priced at -0.32 SAR, while a troy ounce cost -1.00 SAR.

Gold as a Safe Haven Asset

Gold is often seen as a safe investment during times of economic uncertainty. Central banks, especially in emerging markets, are big buyers of gold. In 2022, they added 1,136 tonnes to their reserves, according to the World Gold Council. Gold’s price usually moves in the opposite direction of the US Dollar and US Treasuries. Events that cause geopolitical instability or economic worries can lead to higher gold prices, especially when interest rates are low. Since gold is traded in US dollars worldwide, changes in the dollar affect its pricing. This information helps us understand the economic role of gold, but it does not provide specific investment advice. The recent US military actions in Venezuela have caused significant market uncertainty, leading many to seek safe investments. We are seeing increased market volatility, making it essential to reassess investments and prepare for sudden price changes in the coming weeks. A cautious approach is advised until we gain a clearer understanding of the geopolitical outcomes. With gold prices rising above $4,400, purchasing call options is a smart way to gain potential gains while managing risk. Historically, central banks have been major net buyers of gold through 2024 and 2025, with the World Gold Council noting over 1,000 tonnes purchased in 2024. This strong demand from institutions suggests that the current price rise has solid backing.

Investment Strategies During Market Turmoil

During this turmoil, the US Dollar is benefiting the most, and we can expect its strength to continue in the short term. The Dollar Index (DXY) has already climbed over 1.5% in the last five trading days, reflecting this shift to safer assets. Trading strategies might include selling futures on the Euro or British Pound, which are currently below key technical levels. This cautious market environment is generally negative for stocks, so protective strategies should be considered. The CBOE Volatility Index (VIX) has risen above 20, a level we haven’t seen maintain since mid-2025 during banking sector concerns, indicating increased investor anxiety. Buying put options on major indices like the S&P 500 can be a wise way to prepare for a potential drop. We need to balance the immediate geopolitical fears with the strong economic foundation from 2025. The economic outlook for 2026 remains positive, suggesting this might be a temporary shock rather than the beginning of a long market downturn. Therefore, we should be cautious about being overly pessimistic and keep an eye out for signs of market stabilization for possible adjustments to our hedges. Create your live VT Markets account and start trading now.

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