Gold prices in the Philippines fell on Thursday. According to FXStreet, the price per gram dropped to 7,713.80 PHP from 7,728.34 PHP the day before. The price for a tola decreased to 89,969.55 PHP, down from 90,141.87 PHP. FXStreet updates these prices daily based on international rates, adjusted for the local currency and units.

Gold As An Economic Hedge

Gold acts as a protection against inflation and currency devaluation. Central banks from emerging economies hold large amounts of gold to strengthen their economies. The price of gold often moves opposite to the US Dollar and US Treasuries. Economic uncertainties and fluctuations in the dollar affect gold’s status as a safe investment. Many factors influence the market, including geopolitical tensions and interest rates. Investors tend to buy gold during economic instability because it offers no yield but retains value. Today, we’re seeing a small dip in gold prices, which is a common market fluctuation. This slight decline shouldn’t be viewed as a trend, but rather as a possible buying opportunity. The overall economic situation suggests strong support for gold in the coming weeks.

Current Market Conditions

The current market feeling is cautious, largely due to the ongoing US government shutdown and data blackout. This uncertainty increases the desire for safe assets like gold. We expect this trend to offset today’s small price drop. In 2022, central banks bought a record 1,136 tonnes of gold, and this trend continues. Reports from early 2025 show that central banks, especially in emerging economies, are still active buyers, adding nearly 290 tonnes in just the first quarter. This steady institutional demand establishes a strong price floor for gold. The uncertainty in the US makes it less likely for the Federal Reserve to increase interest rates, which could weaken the dollar. A weaker dollar typically boosts gold prices since gold is priced in USD. This relationship is crucial as the government shutdown progresses. Given this context, we should think about buying call options on gold. This strategy allows us to benefit from potential price increases while limiting our risk. Today’s slight price drop makes entry costs for these options more appealing. For those with significant investments in stocks, now is an excellent time to hedge. Buying gold futures can safeguard portfolios against potential declines in the stock market caused by geopolitical tensions or the US situation. This acts as a smart insurance policy in uncertain times. Create your live VT Markets account and start trading now.

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