Gold prices in Saudi Arabia showed little change on Wednesday, with the price per gram at 497.36 Saudi Riyals (SAR), slightly up from 497.31 SAR the previous day. The price for Gold per tola was stable at SAR 5,801.16, compared to 5,800.55 SAR the day before.

FXStreet determines Gold prices in Saudi Arabia by adjusting global prices to the local currency. These daily updated prices are references and might differ from actual local rates. Gold serves as a traditional store of value and a medium of exchange. It is also seen as a safe-haven asset and inflation hedge, independent of any government backing.

Central Bank Gold Reserves

Central banks hold the largest Gold reserves, using it to diversify and bolster economic confidence. In 2022, they acquired 1,136 tonnes, valued at about $70 billion, with countries like China, India, and Turkey rapidly increasing their holdings. Various factors, such as geopolitical tensions, recession fears, and interest rate changes, can affect Gold prices. Gold tends to rise when interest rates are low and is impacted by movements in the US Dollar, rising when the Dollar weakens.

Gold prices are showing notable stability around the SAR 497 level as of October 22, 2025. We see this period of low volatility not as a lack of interest, but as a potential consolidation before a significant move. This is particularly relevant as recent global inflation numbers for September 2025 have remained stubbornly high, reviving gold’s appeal as an inflation hedge.

We believe the US Federal Reserve is nearing the end of its tightening cycle, with market consensus pointing to a potential rate pause in the first quarter of 2026. Looking back at the pivot in late 2023, similar conditions led to a weaker US Dollar and a subsequent rally in gold prices. This outlook makes long-dated call options an attractive strategy for traders positioning for upside over the next few months.

Geopolitical Tensions and Market Strategies

Geopolitical tensions and fears of a mild global recession heading into 2026 continue to support gold’s role as a safe-haven asset. We have seen a steady increase in inflows into gold-backed ETFs over the past month, totaling over $3 billion globally. Traders should consider this underlying demand when structuring their positions, as it provides a solid floor for prices.

Central bank demand remains a powerful, non-speculative force in the market. New reports from the World Gold Council confirm that central banks, particularly in Asia, added another 310 tonnes in the third quarter of 2025, continuing the aggressive purchasing trend we saw through 2022 and 2024. This consistent buying makes strategies like selling cash-secured puts on gold futures a viable way to collect premium while defining a desirable entry point.

Implied volatility in gold options has been creeping higher, with the GVZ index rising nearly 15% in the last four weeks. This indicates the market is pricing in a larger-than-usual price swing before year-end. For traders who are uncertain of the direction but anticipate a breakout, using straddles or strangles could be an effective way to profit from the expected increase in volatility.

Create your live VT Markets account and start trading now.