**Gold Prices and Market Factors** Gold prices in Saudi Arabia rose on Friday. The cost reached 505.41 Saudi Riyals (SAR) per gram, up from 501.58 SAR the day before. The price for a tola increased to SAR 5,894.98 from 5,850.33 SAR. For 10 grams, the price is 5,054.08 SAR, while a troy ounce is priced at 15,719.47 SAR. FXStreet offers daily updates on gold prices, adjusting international rates to fit the Saudi market based on the USD/SAR exchange rate. Local rates might differ slightly from these reference prices. Gold has always been an important asset, known as a safe-haven investment, especially during financial uncertainty. Central banks are significant gold buyers, purchasing 1,136 tonnes in 2022—a record high for one year. Much of this buying comes from central banks in emerging economies, like China, India, and Turkey. Gold prices can change due to geopolitical issues and interest rates, often moving in the opposite direction of the US Dollar. When interest rates are low, gold is more appealing; when rates are high, interest in gold tends to fall. Geopolitical instability and economic worries can further boost gold prices, as it serves as a hedge against uncertainty. **Trends and Predictions** The recent rise in gold prices shows classic safe-haven behavior at work. The relationship with the US Dollar is significant; the Dollar Index (DXY) has declined to about 101.5 in November 2025, compared to stronger levels in previous years. This means that as the dollar weakens, gold becomes more attractive to international investors. The outlook for gold is improving as expectations around interest rate policies change. With inflation around the Federal Reserve’s target, many expect a possible rate cut in the first half of 2026. This makes a non-yielding asset like gold more appealing. Historically, after rate hikes, expectations of easier monetary policy often benefit precious metals. Geopolitical tensions and signs of a slowing global economy are also boosting support for gold. Central banks continue to buy strong amounts, maintaining the trend seen in 2022. Recent data from the World Gold Council shows another quarter of significant accumulation. This ongoing demand from officials creates a solid price floor for gold. For traders, the current environment suggests a positive outlook, making long positions in gold derivatives appealing. We recommend buying call options with expirations in the second quarter of 2026 to take advantage of potential price gains due to an eventual rate cut. This strategy allows for profit potential while limiting the maximum risk. The main risk to this view would be unexpectedly strong economic data, like a sudden jump in jobs or inflation reports. Such news could delay planned easing by central banks, likely strengthening the US Dollar and putting pressure on gold. Therefore, it’s crucial to keep an eye on economic indicators for any changes in sentiment. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now