With every meeting of the U.S. Federal Reserve, global markets hold their breath. The decision not only determines the direction of the dollar but also shapes the future of gold, which continues to record historic levels. Investors are anticipating rising gains, especially after the price of a gold ounce approached 3,700 USD, driven by expectations of interest rate cuts and a weaker dollar. This sparked a broad wave of buying and a clear shift toward gold as a safe-haven asset.

So let us quickly discuss in this Gold.sa article the impact of Federal Reserve decisions on global gold prices and how this will reflect on the Gulf market.

The Upcoming Federal Reserve Meeting: First in 9 Months with Expectations of Rate Cuts

The current Federal Reserve meeting, held on September 16–17, 2025, with results scheduled to be announced tomorrow, September 17, at 2 p.m. EST (9 p.m. Saudi time), is considered the most important in about nine months. Expectations point to a rate cut for the first time after a long series of tightening measures to curb economic inflation.

Global markets see a 25 basis point cut as the most likely scenario, though a larger cut is not ruled out if economic data shows clear weakness.

This anticipation pushed gold futures (December delivery) to 3,728.40 USD per ounce before stabilizing around 3,720 USD, according to Detafour data.

How Do Rate Cuts Affect Gold Prices?

Rate cuts mean lower bond yields and a weaker dollar, making gold more attractive as an investment safe-haven. Indeed, the U.S. Dollar Index recorded a notable decline during the last hours of September 16, 2025, increasing investor appetite for the yellow metal.

Data from SPDR Gold Trust—the world’s largest gold-backed ETF—also showed an increase in gold holdings, a sign that institutional demand itself is moving to strengthen positions in gold, supporting the current rally.

Gold Prices Today Globally and Locally in Saudi Arabia

On September 16, 2025, the spot price of gold was about 3,682 USD per ounce, while gold futures stabilized at 3,720 USD per ounce. The price of 24K gold per gram reached 445.33 SAR (≈118.73 USD), while