Gold prices in Malaysia fell on Tuesday. The cost per gram dropped to 535.97 MYR from 537.51 MYR on Monday. The price per tola also went down to 6,250.97 MYR, down from 6,269.39 MYR the day before. FXStreet updates Gold prices in Malaysia daily, adjusting international prices to fit local rates and units. These rates serve as a reference and may vary slightly from actual market prices.

Gold as a Hedge Against Inflation

Gold is a popular investment due to its long-standing value as a safe asset and its ability to protect against inflation and currency decline. Central banks in countries like China, India, and Turkey are increasing their Gold reserves, with global purchases hitting a record high in 2022. Gold prices often rise when the US Dollar falls, particularly during geopolitical tensions or fears of recession. Since Gold is priced in dollars (XAU/USD), a strong Dollar usually pushes Gold prices down, while a weaker Dollar can lift them up. Current Gold prices are: – 535.97 MYR per gram – 5,359.11 MYR per 10 grams – 6,250.97 MYR per tola – 16,670.24 MYR per troy ounce Although there’s a slight dip in Malaysian Ringgit values, this appears to be a minor fluctuation. Gold, currently around $2,350 per ounce, is influenced more by global factors than by daily changes. This temporary softness could be a good opportunity for traders planning for the upcoming months.

Impact of Central Bank Buying

US inflation data is showing signs of easing, with the latest core CPI at 2.8% for September 2025. This has led to increased market expectations, with Fed fund futures indicating a higher than 70% chance of a rate cut in the first half of 2026. Lower interest rates make holding non-yielding gold more appealing, which typically supports higher prices. Strong central bank buying, which surged in 2022 and 2023, is still ongoing. In 2023 alone, 1,037 tonnes of Gold were added, setting a new standard. Reports from the early months of 2025 show that this trend continues. This steady demand helps stabilize Gold prices and reduces the risk of significant drops. Ongoing geopolitical tensions and slowing global growth create uncertainty. Recent global manufacturing PMI data has been just under the 50-point mark for several months, raising concerns about a broader economic slowdown. In these conditions, Gold’s role as a safe-haven asset becomes more vital, attracting investors looking to safeguard against market volatility. With these factors in mind, traders should consider any price weakness in the weeks ahead as a potential opportunity. By using call options to establish long positions, they can benefit from the expected upward movement into early 2026 as rate cut expectations solidify. This strategy allows for participation in possible gains while managing the maximum risk involved. Create your live VT Markets account and start trading now.

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