Gold prices in the Philippines went up on Wednesday, according to FXStreet. The price for a gram rose to 7,797.81 Philippine Pesos (PHP), up from 7,733.83 PHP the day before. The price for a tola also increased to PHP 90,960.17, compared to PHP 90,205.90 previously. Here are the current prices: – 1 gram: 7,797.81 PHP – 10 grams: 77,982.75 PHP – 1 tola: 90,960.17 PHP – 1 Troy ounce: 242,529.80 PHP FXStreet updates these prices daily by converting international USD/PHP rates to local currency.

Gold as a Store of Value

Gold has always been seen as a way to hold value and is used as money. It’s a safe investment and helps protect against inflation and currency loss. Central banks are the main buyers, acquiring 1,136 tonnes in 2022, worth about $70 billion. Gold prices usually move in the opposite direction of the US Dollar and US Treasuries. Prices are affected by geopolitical tensions and fears of recession. Gold tends to do well when interest rates are low, but a strong US Dollar can lower its value. With gold performing well, it reflects a weaker US dollar and changes in monetary policy expectations. The US Dollar Index (DXY) has dropped to around 103.5, down from earlier highs in 2025, making dollar-denominated assets like gold more appealing. This follows the Federal Reserve’s cautious tone at the September 2025 meeting, where they decided to keep rates steady.

Investment Strategies in Gold

Investors might consider using call options or bull call spreads on gold futures to take advantage of potential gains while managing risk. Implied volatility in the gold market has increased, making direct long-term options expensive, so spreads can be a more cost-effective way to be bullish. The CME FedWatch tool indicates a 60% chance of a rate cut by the first quarter of 2026, a notable change from just three months ago. The continued buying by central banks, which picked up in 2022, supports higher prices. In the first three quarters of 2025, central banks added over 850 tonnes to their reserves, especially from emerging markets. This ongoing demand suggests that major price drops could be seen as buying opportunities. Selling cash-secured puts on gold ETFs could be a good strategy for earning income. With inflation still lingering, as shown by the September 2025 CPI report at 3.1%, gold’s role as a hedge against inflation is becoming clearer again. While it’s not the extreme inflation of 2022, its persistence is impacting bond yields. Futures contracts, like the December 2025 (GCZ5) contract, can be used to speculate on price increases driven by these inflation-related flows. Geopolitical issues also play a crucial role, enhancing the appeal of gold as a safe investment. Current trade talks between the US and the Pan-Asian trade bloc create uncertainty, which often favors assets like gold. This environment supports maintaining a long position, possibly through futures, while engaging in shorter-term options to benefit from volatility events. Create your live VT Markets account and start trading now.

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