Insights 
VT 
Gold prices in Saudi Arabia dropped on Thursday, as reported by FXStreet. The price per gram decreased to 493.26 Saudi Riyals (SAR) from 494.20 SAR on Wednesday, while the price per tola fell to 5,753.25 SAR from 5,764.20 SAR.
Gold is priced in Saudi Riyals according to international rates for the local currency and units. These prices are updated daily, though they may vary slightly from local market rates.
Gold As A Protective Asset
Gold is traditionally valued as a store of wealth and exchange medium, often sought after during market volatility as a protective asset. It is also seen as an inflation hedge and a defense against currency depreciation.
Central banks are the largest purchasers of Gold, buying 1,136 tonnes in 2022 worth about $70 billion. Emerging economies like China, India, and Turkey are increasing their Gold reserves.
Gold generally moves inversely with the US Dollar and US Treasuries, tending to rise when the Dollar is weak. Its price is influenced by geopolitical factors, interest rates, and notably by US Dollar movements, with interest rate levels inversely affecting Gold’s appeal.
We are seeing a minor dip in gold prices, as indicated by the drop to SAR 493.26 per gram. This slight pullback should not be mistaken for a change in the broader trend. In fact, we view these small dips as potential entry points for new positions.
US Federal Reserve’s Next Move
The market’s focus is shifting towards the US Federal Reserve’s next move, with expectations building for a rate cut in the first quarter of 2026. After a prolonged period of higher rates through 2024 and much of 2025, recent US inflation data, which cooled to 2.8% in September, is supporting this dovish pivot. As a yield-less asset, gold becomes more attractive when interest rates are expected to fall.
This sentiment is already weakening the US Dollar, which has an inverse relationship with gold. The Dollar Index (DXY) has fallen nearly 2% over the last month, dropping from over 105 to around 103.2 as of this morning. A weaker dollar makes gold cheaper for holders of other currencies, which typically boosts demand.
Central bank buying remains a powerful supportive factor, a trend we have watched accelerate since the record purchases seen back in 2022. According to the latest World Gold Council data, central banks have added another 850 tonnes to their reserves so far in 2025, with emerging market banks leading the acquisitions. This steady institutional demand creates a strong floor under the market price.
Furthermore, recent economic indicators point to a slowdown, increasing gold’s appeal as a safe-haven asset. The latest US Non-Farm Payrolls report was weaker than expected, and manufacturing PMI has remained below the 50-point mark for two consecutive months, signaling contraction. This backdrop of economic uncertainty encourages diversification away from riskier assets like stocks.
Given these factors, we should consider positioning for a price increase in the coming months. Derivative traders could look at buying call options with expiration dates in March and April 2026 to capitalize on the anticipated rate cuts. Selling out-of-the-money put spreads would be another strategy to benefit from the expected price stability and upside potential.
