Gold prices in Saudi Arabia rose on Monday, with the cost per gram reaching 354.53 SAR, up from 353.84 SAR on Friday. The price for gold per tola also increased, from 4,127.10 SAR to 4,135.13 SAR.

Gold prices vary depending on unit measure, with 10 grams priced at 3,545.27 SAR and a troy ounce at 11,027.09 SAR. These prices are derived from international rates adapted to the local currency and updated daily.

Gold plays a prominent role as a safe-haven asset during economic turmoil. In 2022, central banks added 1,136 tonnes of gold worth approximately $70 billion, marking the highest yearly purchase on record.

Gold’s price movements are influenced by various factors, including geopolitical instability and interest rates. The asset typically performs well when the US Dollar weakens, while higher interest rates may negatively affect its price.

This rise in gold prices aligns with broader trends we have observed globally, where investors look for stability in physical assets when financial markets appear volatile. The price adjustments reflect movements in international markets, translated into local rates. These fluctuations also tie into central bank activity, where large purchases over the past years suggest a growing preference for gold as a reserve asset.

Looking ahead, traders should keep a close watch on interest rate policies, particularly from the US Federal Reserve, as these have historically had a direct impact on gold prices. If rates remain high or increase further, holding gold becomes less attractive compared to assets that provide regular income, such as bonds. Conversely, if rate cuts begin to materialise, gold could see further gains as investors rotate back into non-yielding assets.

Geopolitical factors remain another component to monitor. Any further instability could drive demand higher as market participants seek safer stores of value. We have seen this pattern repeat itself historically, with gold acting as a hedge against uncertainty. With ongoing global tensions, this remains a driving force in price action.

A daily update of these movements allows traders to respond to changes with better precision. However, short-term volatility is expected, and sharp movements in the US Dollar may cause swings in valuations. While this remains a familiar dynamic, those closely tracking macroeconomic signals will be better positioned to anticipate shifts and adjust their strategies accordingly.