Gold prices in Malaysia climbed to 550.91 Malaysian Ringgits (MYR) per gram on Monday, up from 545.73 MYR on Friday. The price per tola also increased to 6,425.67 MYR, compared to 6,365.25 MYR previously. Gold prices are updated daily according to market rates and the USD/MYR exchange rate, as reported by FXStreet. These prices are for reference only, and local rates may vary slightly.

Gold as a Safe-Haven Asset

Gold acts as a store of value and is often used in unstable times as a safe-haven asset. It also serves as a hedge against inflation and currency depreciation. Central banks hold significant amounts, adding 1,136 tonnes worth about $70 billion to their reserves in 2022. The price of gold usually rises when the US Dollar weakens since it is inversely related to the Dollar and Treasuries. When stock prices rise, gold tends to drop; however, during market sell-offs, gold prices often increase. Gold prices can be influenced by various factors, such as geopolitical instability or recession threats, which enhance its safe-haven appeal. Interest rates also play a role; typically, lower interest rates push gold prices higher, influenced by the behavior of the USD. With today’s rise in gold prices, it’s essential to consider the driving factors behind this change. Gold is viewed as a hedge against currency depreciation and economic uncertainty. The current upward trend suggests that derivative traders should brace for increased volatility and potential opportunities in the upcoming weeks.

Monetary Policy and Its Impact

We are witnessing signs of a slowing global economy, which is leading to expectations for a more cautious monetary policy from the US Federal Reserve. Inflation peaked in 2022, and the latest US Consumer Price Index from September 2025 showed inflation steady at 2.8%. This makes the Fed’s tight stance harder to defend. Markets now see a greater than 60% chance of a rate cut by the second quarter of 2026, which could weaken the Dollar and further boost gold. Geopolitical instability also supports gold’s role as a safe haven. Ongoing trade disputes between the US and China over semiconductor technology create uncertainty in riskier assets like equities. Investors often turn to gold in such environments, a trend we’ve seen before during the trade war’s early days in 2018 and 2019. Central bank purchases maintain a strong support level for gold prices. Following record purchases in 2022, the World Gold Council reported that central banks in emerging markets continued to buy net through 2023 and 2024. This steady demand reinforces gold as a key reserve asset. Given these positive trends, traders might consider positioning for further gains in gold prices. A strategy of buying call options on gold futures, possibly with expiration dates in early 2026, could allow traders to capture potential profits from expected interest rate cuts while managing their risk. Create your live VT Markets account and start trading now.

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