Gold prices in Saudi Arabia increased on Monday as per FXStreet data. The price of gold reached 611.22 Saudi Riyals (SAR) per gram, up from SAR 600.56 on Friday. Gold per tola rose to SAR 7,129.12 from SAR 7,004.76 on the previous Friday.
FXStreet updates gold prices by translating international USD prices to the local SAR currency and units. These prices, though updated daily based on market rates at publication, may differ slightly from local rates. Gold is traditionally seen as a stable asset during economic uncertainties and as a hedge against inflation and currency depreciation.
Central Banks And The US Dollar
Central banks hold the most gold, with a substantial purchase of 1,136 tonnes worth about $70 billion in 2022. The price of gold often inversely correlates with the US Dollar; when the Dollar falls, gold prices tend to rise. Economic instability and shifts in interest rates also impact gold prices. The strength of the US Dollar can suppress gold prices, while its weakness tends to elevate them.
We are seeing gold continue its strong upward momentum, having recently pushed past the $5,000 mark. This move is happening alongside a noticeably weaker US Dollar, which has been losing ground against other major currencies. The inverse relationship between a falling dollar and rising gold is playing out exactly as expected.
This trend was supported by massive buying from central banks throughout 2025. Looking back, reports from the World Gold Council for the fourth quarter of 2025 showed that central banks added another 350 tonnes to their reserves, marking the sixth consecutive quarter of heavy accumulation. This consistent demand from official sources provides a strong floor for prices and signals a long-term shift away from dollar-denominated assets.
Geopolitical tensions, including the US government shutdown threats and trade friction over Greenland, are fueling this flight to safety. For derivatives traders, this suggests that long positions on gold futures or buying call options on gold-tracking ETFs could be favorable in the coming weeks. The high volatility also makes options pricing important, so strategies like bull call spreads might offer a way to manage costs while betting on further gains.
Federal Reserve And Interest Rates
Looking back at 2025, we saw the Federal Reserve pivot away from its aggressive rate-hiking cycle, signaling a peak in interest rates. This shift has been a significant tailwind for gold, as lower rates decrease the opportunity cost of holding a non-yielding asset like bullion. As long as the market expects rates to stay flat or decline, investors will likely continue to allocate capital to gold.
