Gold prices in Malaysia rose on Friday, according to FXStreet. The price reached 554.97 Malaysian Ringgits (MYR) per gram, up from 551.85 MYR the day before. The price for a tola increased from MYR 6,436.68 to MYR 6,473.13. In other terms, 10 grams now cost 5,549.81 MYR, while a troy ounce is priced at 17,261.59 MYR.

Gold Price Calculation

Gold prices are determined by adjusting international rates to local currency and measurement units. FXStreet updates these prices daily, reflecting current market conditions at the time of publication. Local rates might vary slightly from these numbers. Gold has long been valued as a safe asset and currency. Today, it serves as a safe-haven investment, shielding against inflation and currency decline. Central banks, especially in emerging economies, hold large amounts of gold. Gold’s value typically moves in the opposite direction of the US Dollar and Treasury bonds. When stock markets decline, gold’s price usually rises. It is mainly influenced by geopolitical instability, concerns about recessions, and interest rate changes. Generally, gold prices rise when the Dollar weakens. The recent increase in gold prices, now at MYR 554.97 per gram, is noteworthy. This upward trend reflects not just local conditions but also global market shifts, particularly regarding the US Dollar. Traders should prepare for more market fluctuations as these worldwide factors unfold in the coming weeks.

Central Bank Demand and Market Strategy

The current strength in gold is driven by expectations of a shift from the US Federal Reserve. With US inflation falling to 2.4% last month, the high-interest rate period that began in early 2020 seems to be ending. This brings to mind the Fed’s policy change in 2019, which led to a significant rise in precious metals, as lower rates made gold more appealing. Central bank demand is providing strong support for gold prices. In both 2023 and 2024, central banks added over 1,000 tonnes to their reserves, keeping up with the historic buying trend seen in 2022. This consistent purchase activity, particularly from emerging markets, aims to diversify away from the Dollar and enhances gold’s stability moving forward. For derivative traders, this situation suggests that buying call options on gold futures may be a wise strategy. Implied volatility has not yet surged, so option prices are fairly reasonable. This presents a cost-effective way to prepare for a potential price increase if gold maintains its upward momentum through the end of the year. At the same time, it’s important to remember gold’s role as a safe asset in light of ongoing concerns about a global economic slowdown. Using gold futures or options to hedge against equity investments is a smart choice, as gold typically moves inversely to riskier assets. This balanced strategy allows us to benefit from possible gains while protecting ourselves from market instability. Create your live VT Markets account and start trading now.

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