Gold prices in Saudi Arabia went up on Tuesday, based on FXStreet data. The price per gram increased from 609.49 SAR to 610.37 SAR. Additionally, the price per tola rose from 7,108.94 SAR to 7,119.19 SAR. FXStreet updates these prices daily, reflecting international gold market rates and converting them into Saudi Riyals. However, local prices may vary slightly. The price for a Troy Ounce of gold is 18,984.33 SAR.

Gold: A Valuable Asset

Gold has long been seen as a valuable asset because it serves as a store of value and a means of exchange. It helps protect against inflation and currency loss since it is not linked to any government. In 2022, central banks bought 1,136 tonnes of gold to diversify their reserves and strengthen their currencies. Factors such as geopolitical issues and interest rates influence gold prices. The performance of the US Dollar also directly affects the gold market; generally, when the Dollar weakens, gold prices rise. Gold has an inverse relationship with the Dollar and US Treasuries, meaning its value usually increases when these assets decrease. The slight rise in gold prices today reflects its relationship with the US Dollar, which is currently under pressure. We should watch for the upcoming Federal Reserve meeting next week, as any signals regarding future interest rate policy will likely affect gold prices. Traders need to be cautious, as the market anticipates rate cuts later this year, making the Fed’s remarks very important.

Impact of CPI Reading

After a period of fluctuating inflation in 2025, the latest CPI reading from December showed inflation at 3.1%, slightly above what was expected. This complicates the Federal Reserve’s path and creates uncertainty, which usually benefits gold as a safe-haven asset. For example, during the fall of 2025, concerns about a global slowdown caused gold futures to rise above $2,100 per ounce. We must also consider the ongoing strong demand from central banks, which has helped maintain steady prices. According to the latest data from the World Gold Council for 2025, central banks in emerging markets continued to aggressively purchase gold, adding nearly 950 tonnes to global reserves last year. This demand provides stability against potential price declines due to strict monetary policies. For those trading derivatives, this suggests increasing implied volatility in gold options ahead of the Fed’s statement. Traders might position themselves for significant price swings using straddles to benefit from volatility, regardless of direction. Alternatively, call options offer a defined-risk way to bet on a potentially dovish surprise that could push gold prices up substantially in the coming weeks. Create your live VT Markets account and start trading now.

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