Gold prices in Saudi Arabia rose on Friday. The price per gram reached 525.81 Saudi Riyals (SAR), up from SAR 521.90 the day before. The price per tola also increased, now at SAR 6,133.00, compared to SAR 6,087.31 yesterday. Here are the current gold prices for different measurements: – 1 gram: 525.81 SAR – 10 grams: 5,258.14 SAR – 1 tola: 6,133.00 SAR – 1 troy ounce: 16,354.67 SAR FXStreet calculates these prices using international figures converted to local currency and units, updating them daily to ensure accuracy.

Gold As A Hedge Against Inflation

Gold is still seen as a valuable asset. It has a long history as a store of value and is used during economic instability as a hedge against inflation. Central banks are major buyers, and in 2022, they added 1,136 tonnes to their reserves. Gold prices often rise when the US Dollar weakens. Factors like geopolitical issues, economic instability, and currency fluctuations heavily influence gold prices. Given gold’s recent strength, we expect this upward trend to continue in the coming weeks. The rise in price is supported by a weakening US Dollar. The Dollar Index (DXY) recently fell below the important 104 level for the first time since July 2025. This drop is happening amid renewed trade tensions between the US and China, prompting investors to seek safe-haven assets. The Federal Reserve’s recent comments suggest that they may pause interest rate hikes soon, especially after September 2025’s non-farm payroll report showed weaker-than-expected job growth at 150,000 jobs. Lower interest rates make non-yielding assets like gold more appealing. We believe this sentiment will keep gold prices strong through the fourth quarter.

Central Bank Demand For Gold

We are also seeing strong demand for gold from central banks, a trend that began in 2022. The latest World Gold Council report for Q3 2025 shows that central banks added another 250 tonnes to their reserves. The People’s Bank of China and the Reserve Bank of India are leading these purchases. This institutional demand creates significant support for gold prices. For traders, this situation looks favorable for bullish strategies using derivatives. Buying call options on gold futures, like the December (GCZ5) contract, can help capture price gains while managing risk. We might also consider bull call spreads to lower costs, especially with implied volatility increasing. After the volatility seen in 2023, managing risk is crucial, even with a positive outlook. For those using futures contracts for a long position, we recommend setting tight stop-loss orders below recent support levels. Upcoming inflation data, especially the next Consumer Price Index release, might cause short-term price fluctuations. The inverse relationship between gold and the US Dollar is the key factor to watch. As long as economic data points to a slowing US economy, the dollar should remain under pressure. This will likely act as a major driver, pushing gold prices higher in the near future. Create your live VT Markets account and start trading now.

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