Gold prices in Saudi Arabia fell on Monday, based on FXStreet data. Gold was priced at SAR 577.83 per gram, down from SAR 582.54 on Friday.
Gold also eased to SAR 6,739.74 per tola from SAR 6,794.59 per tola. Other listed prices were SAR 5,778.34 for 10 grams and SAR 17,972.60 per troy ounce.
FXStreet derives Saudi prices by converting international gold prices using the USD/SAR rate and local units. Prices are updated daily at the time of publication and are for reference, as local rates may differ slightly.
Gold is used as a store of value, a medium of exchange, and for jewellery. It is also used as a hedge against inflation and currency depreciation.
Central banks are the largest holders of gold and may buy it to diversify reserves. They added 1,136 tonnes worth about $70 billion in 2022, the highest annual total since records began, with China, India and Turkey among those increasing reserves.
Gold often moves inversely to the US Dollar and US Treasuries, and can also move opposite to equities. Prices are influenced by geopolitical risks, recession fears, interest rates, and the strength of the US Dollar.
We are seeing a minor dip in gold prices, which can be viewed as a slight pause after a significant rally. This small pullback should not be mistaken for a change in the underlying trend. For derivative traders, such moments often present opportunities rather than signal a reversal.
The fundamental support for gold remains strong due to large-scale buying from central banks. Looking back at the data from 2025, we saw central banks add over 1,037 tonnes to their reserves, nearly matching the record levels we saw a couple of years prior. This consistent demand creates a solid price floor, suggesting any significant drop would be met with strong buying interest.
Geopolitical instability also continues to fuel gold’s appeal as a safe-haven asset. Ongoing tensions in key global regions provide a persistent reason for investors to hold gold as a form of insurance. Therefore, we believe any price weakness in the coming weeks will likely be short-lived.
The market is now focused on the United States Federal Reserve’s potential interest rate decisions for later this year. Recent inflation data from last month showed the Consumer Price Index holding around a stubborn 3.5%, complicating the path to rate cuts. However, the general expectation remains that a policy pivot will occur, which would likely weaken the US dollar and push gold prices higher.
Given this outlook, the current price dip could be a tactical entry point for bullish positions. We see this as a chance to consider buying call options with expirations in the later months of 2026. This strategy allows for capitalizing on the expected upward trend while managing downside risk if prices temporarily fall further.
