Gold prices in Saudi Arabia rose on Wednesday. According to FXStreet, the price increased to 632.26 Saudi Riyals (SAR) per gram, up from SAR 624.15. The price per tola also went up, reaching SAR 7,374.61 from SAR 7,279.98 the day before. FXStreet calculates gold prices in local currency by adjusting international rates and measurement units. They update these figures daily based on market conditions. These prices serve as a guide and can vary locally. Gold is often seen as a secure investment, especially during unstable economic times.

Central Banks Buying Gold

Central banks, especially from emerging markets like China, India, and Turkey, are expanding their gold reserves. In 2022, they bought 1,136 tonnes, worth around $70 billion, which was the highest ever recorded in a year. The price of gold is influenced by various factors, including geopolitical issues, the strength of the US Dollar, and interest rate changes. When the Dollar weakens or interest rates drop, gold prices usually rise. Because gold does not yield interest, it is a popular choice for investors looking to protect against inflation and currency loss. As a result, many investors turn to gold when they want to diversify their portfolios during economic uncertainty. Gold prices are trending upward today, January 28th, 2026. This suggests strong buying interest from major players, especially as the market awaits new policy announcements from the Federal Reserve.

Factors Driving Gold Prices

The current strength in gold prices is not surprising, given the consistent buying over the past year. After the record purchases in 2022, central banks, especially in emerging markets, continued to build their gold reserves throughout 2025. This steady demand led to an increase of over 800 tonnes in total global central bank holdings last year, creating a solid foundation for current prices. Additionally, a weakening U.S. Dollar over the last year has boosted gold prices. Following the Federal Reserve’s cautious easing efforts in mid-2025 to support a slowing economy, lower interest rates have made holding gold more appealing. The inflation that occurred from 2022 to 2024 has left investors cautious about currency devaluation. We also need to consider ongoing geopolitical tensions that keep demand for safe-haven investments like gold strong. This uncertainty can protect gold prices during potential market drops. For derivative traders, this support reduces the likelihood of sharp declines in gold prices. In the coming weeks, traders may want to adopt strategies that take advantage of the current strength. Buying call options or creating bull call spreads could be smart moves for a potential price breakout, especially if the Fed leans towards a more dovish approach. Given the solid fundamental support, selling out-of-the-money puts could also be a good strategy to earn premiums while betting on price stability. Create your live VT Markets account and start trading now.

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