Gold hits $3,754 per ounce in 2025… but why?! Global inflation panic and escalating geopolitical tensions are igniting the markets!

This historic jump has reopened the big question: When does gold rise, and what factors push it to such record levels? Gold never moves randomly — its price is directly influenced by a complex mix of economic events, monetary policies, and geopolitical crises. With ongoing tensions in the Middle East and Europe, combined with central bank financial strategies, investors have found themselves with one reliable refuge to protect their wealth: the precious metal itself.

In this comprehensive guide from Gold.sa, we walk you through the five essential factors that drive gold prices upward, along with an explanation of why gold surged in 2025, giving you a clearer view of both the local and global market landscape. Stay with us!

When Does Gold Price Rise?

Gold prices typically rise during periods of global inflation, when currencies lose part of their value, and investors turn to gold as a safe haven. Geopolitical tensions also increase demand due to fears of market volatility. In addition, higher demand for gold bars and investment funds contributes to price increases. Meanwhile, in Gulf markets, local factors such as seasonal buying, taxes, and making‑charge costs can influence the final retail price of gold.

There are five key factors that drive the rise of the yellow metal — whether gold bars or jewelry — and we’ll explore each of them in detail:

✔ Economic inflation

✔ Global geopolitical tensions

✔ Rising global demand for gold

✔ Financial market volatility

✔ Local factors in the Saudi market

1– During Periods of Economic Inflation

Economic inflation leads to higher gold prices. When the prices of goods and services rise, the purchasing power of cash and paper currencies declines. This pushes investors toward gold as a safe store of value, causing its market price to increase.

In July 2025, global inflation reached