Insights 
VT 
Gold prices in Saudi Arabia increased on Friday, with the value per gram reaching 525.81 Saudi Riyals (SAR), up from SAR 521.90 the day before. The price per tola also saw an increase, reaching SAR 6,133.00 compared to SAR 6,087.31 the previous day.
The gold prices for different measurements include 1 gram at 525.81 SAR, 10 grams at 5,258.14 SAR, 1 tola at 6,133.00 SAR, and a troy ounce at 16,354.67 SAR. FXStreet calculates these prices by adapting international figures to local currency and units, updating daily for accuracy.
Gold As A Hedge Against Inflation
Gold continues to be a valuable asset due to its historical role as a store of value and its use during economic instability as a hedge against inflation. Central banks are the primary buyers, significantly increasing their reserves in 2022 by adding 1,136 tonnes.
Gold’s value is often inversely correlated with the US Dollar and risk assets, with the former causing the price of Gold to rise when it depreciates. Factors such as geopolitical issues, economic uncertainty, and currency movements impact Gold prices significantly.
Given the recent strength in gold, we see this upward trend continuing in the coming weeks. The price increase is supported by a weakening US Dollar, with the Dollar Index (DXY) recently breaking below the key 104 level for the first time since July 2025. This move comes amid renewed trade friction between the US and China, pushing investors toward safe-haven assets.
The Federal Reserve’s recent commentary suggests a pause in rate hikes is imminent, especially after September 2025’s non-farm payrolls report came in weaker than expected at 150,000 jobs. Lower interest rates decrease the opportunity cost of holding non-yielding bullion, making gold more attractive. We anticipate this sentiment will provide a strong floor for gold prices through the rest of the fourth quarter.
Central Bank Demand For Gold
We are also seeing sustained physical demand from central banks, a trend that has accelerated since the large purchases we observed back in 2022. The latest World Gold Council report for Q3 2025 showed central banks added another 250 tonnes to their reserves, with the People’s Bank of China and the Reserve Bank of India leading the buying. This institutional demand creates a fundamental price support that is hard to ignore.
For traders, this environment appears favorable for bullish positions using derivatives. Buying call options on gold futures, such as the December (GCZ5) contract, offers a way to capture upside potential while defining risk to the premium paid. We could also consider bull call spreads to lower the entry cost, especially with implied volatility ticking up.
Looking back at the volatility we saw in 2023, managing risk remains critical even with a bullish outlook. For those using futures contracts to express a more direct long position, we recommend placing tight stop-loss orders below recent support levels. Upcoming inflation data, specifically the next Consumer Price Index release, could introduce short-term price swings.
The inverse relationship between gold and the US Dollar remains the most important factor to monitor. As long as economic data continues to point toward a slowing US economy, the dollar should remain under pressure. This will likely act as a primary catalyst, pushing gold prices higher in the near term.
