Insights 
VT 
Gold prices in Saudi Arabia showed a decrease on Thursday, as indicated by data from FXStreet. The price per gram fell to 486.75 Saudi Riyals (SAR) from 487.35 SAR the previous day.
Additionally, the price per tola declined to 5,677.44 SAR from 5,684.38 SAR. Other rates include 4,867.57 SAR for 10 grams and 15,139.56 SAR for a troy ounce.
FXStreet Methodology
FXStreet’s methodology involves converting international prices from USD to SAR for daily updates. These are reference prices, and actual local rates may vary slightly.
Gold is historically a store of value and a medium of exchange, considered a safe-haven asset and a hedge against inflation. Central banks are notable purchasers, amassing large reserves to stabilize their economies.
In 2022, they added 1,136 tonnes worth about $70 billion, marking a record annual acquisition. Gold prices often exhibit an inverse relationship with the US Dollar and US Treasuries.
Factors influencing the price include geopolitical instability, interest rates, and the strength of the US Dollar. Gold is priced in dollars, with a strong Dollar stabilising prices, while a weaker Dollar could drive them up.
Market and Economic Trends
While we saw a slight dip in gold prices today, October 9, 2025, this daily noise is less important than the bigger picture. Gold is primarily a play against the US dollar and interest rate expectations. As a yield-less asset, gold’s appeal grows when we anticipate lower interest rates, which now seems increasingly likely.
We’ve been watching the Federal Reserve hold rates steady for over a year, a situation reminiscent of the high-rate environment that began back in 2023. However, the latest jobs report from September 2025 showed a gain of only 145,000, well below forecasts and signaling a cooling economy. This weak data has significantly increased the probability of a Fed pivot to rate cuts within the next six months.
Furthermore, we cannot ignore the relentless demand from central banks, a trend that has accelerated since the record buying we saw in 2022. The latest data from the World Gold Council confirms that emerging economies, particularly the People’s Bank of China, added another 210 tonnes to their reserves in the third quarter of 2025. This consistent buying creates a strong floor under the market, especially amidst ongoing geopolitical uncertainty.
For us in the derivatives market, this suggests a shift in strategy may be warranted. Buying long-dated call options could be an effective way to position for a potential rally in the first half of 2026, driven by falling rates. We should also anticipate an increase in volatility as the market digests each new piece of economic data related to a potential recession.
