Gold prices in Saudi Arabia were broadly unchanged on Monday, based on FXStreet data. Gold was priced at SAR 547.27 per gram, compared with SAR 547.75 on Friday.
Gold was also quoted at SAR 6,383.12 per tola, down from SAR 6,388.83 on Friday. Listed rates included SAR 5,472.70 for 10 grams and SAR 17,021.93 per troy ounce.
FXStreet derives Saudi prices by converting international gold prices using the USD/SAR exchange rate and local units. Prices are updated daily at the time of publication and are for reference, as local rates may vary slightly.
Central banks are the largest holders of gold. World Gold Council data shows central banks added 1,136 tonnes, worth about $70 billion, to reserves in 2022, the highest annual purchase on record.
Gold often moves inversely to the US Dollar and US Treasuries, and can also move against risk assets such as shares. Price drivers include geopolitical events, recession fears, interest rates, and changes in the US Dollar, as gold is priced in dollars (XAU/USD).
Gold prices are currently holding steady, which is a notable calm after the significant rally we saw through most of 2025. This stability at such high levels presents a key decision point. We must now consider if this is a pause before another leg up or a peak before a correction.
The foundation for these prices was built on relentless central bank buying, a trend that has not slowed. Looking back, we saw central banks add over 1,000 tonnes to their reserves in 2025, mirroring the record-breaking pace of previous years. This consistent demand, particularly from developing nations, provides strong underlying support for the market.
We must also remember how the U.S. Federal Reserve’s interest rate cuts in 2025 fueled the rally by lowering the opportunity cost of holding gold. That policy pushed the U.S. Dollar Index down below the 98 mark, making gold cheaper for foreign buyers and boosting its appeal. Any indication that central bank policy might tighten again should be viewed as a primary risk factor in the weeks ahead.
With the market now moving sideways, implied volatility has decreased significantly. The CBOE Gold Volatility Index (GVZ) is now sitting near a six-month low of 14, a sharp contrast to the levels above 20 we saw during last year’s climb. This makes options strategies, such as long straddles, relatively cheap for traders anticipating a breakout from this tight range.
Persistent geopolitical risks that carried through 2025 continue to underpin gold’s value as a safe-haven asset. Any sudden easing of these global tensions could quickly trigger a wave of selling as traders take profits. We should therefore watch the geopolitical landscape closely, as it will likely be the catalyst for the next major price swing.
