Rising Gold - An Economic Perspective

In the past year gold prices have seen a significant increase, reaching all-time highs and displaying skyrocketing performance. As of today, 26 Rabi Al Awwal 1447 (18th of September, 2025), the price of one gram of 24K Gold is 442 SAR, up from 309 SAR one year ago (Goldprice.org). That makes for a whopping 43% increase.

What is Behind This Big Rise?

The following has had a big impact:

1. Current geopolitical uncertainties, including the Israeli-Palestine conflict

2. The weakening of the US Dollar due to the high deficit in the American economy

3. U.S. imposing higher tariffs on imports, especially from trade-surplus nations

All of this combined has made people disinclined to the US dollar, turning to Gold as a safer option. This is compounded by the fact that European economies are also struggling, and China is engaged in a trade war with the US, which leaves little to no trust for vehicle currencies today.

Outlook on Gold Prices Moving Forward

There are no strong indicators that the troubles mentioned above will end soon. Everyday we are seeing changes in American policies for world trade, political fights, and never-ending wars. All of this means that people will continue to turn to gold for safety and purchasing power.

It is expected that this trend will continue for a few years until good indicators appear of growing economies, lessening geopolitical uncertainties, and a clearer understanding is achieved of how non-US countries will deal with tariffs (will some countries declare bankruptcy, will they thrive, will they stay the same etc.)

Is it a Good Time to Buy or Sell Gold Today?

We believe it is still time to buy gold today as it is expected that price hikes will continue. Not only gold, but even silver and other precious metals. The reason being is that gold and silver are being accumulated by many countries, including India, China, and Turkey, to strengthen their economic standing. Even if people have made significant profits in Gold trading today, we will continue to save the purchasing power of our money if we invest it in the form of gold [among global currency wars and uncertainties].

-Dr. Nahed Taher, Chief Executive Officer of Seeds Consulting