Saudi Gold Prices Plunge Amid US Inflation and Rate Uncertainty

Gold prices in Saudi Arabia have extended their slide due to US inflation and rate outlook. According to FXStreet data, the price of gold in Saudi Arabia slipped to SAR 517.40 per gram for a second straight session.

The decline is attributed to dollar strength, US inflation, and rate expectations. The stronger dollar makes gold more expensive for holders of other currencies. Renewed inflation pressure has fueled fears that price growth is not cooling fast enough, outweighing hopes of a turn in monetary policy.

Investors are closely watching upcoming interest-rate moves as higher rates raise the opportunity cost of holding gold, which pays no yield. The Saudi financial news site Argaam reported a sharp correction at the end of the previous week that extended into early Monday trading after a historic rise in prices.