Gold prices in the Philippines fell on Tuesday, according to FXStreet. The price per gram decreased to 7,936.99 PHP from 7,973.23 PHP on Monday. The price for a tola dropped to 92,573.31 PHP, down from 92,998.20 PHP the day before. The cost for 10 grams is now 79,368.31 PHP, while a troy ounce is priced at 246,868.20 PHP.

FXStreet Pricing Method

FXStreet determines these prices by adjusting international rates to match the local currency. They update prices daily based on market conditions. Gold is seen as a safe asset and a way to protect against inflation. Central banks hold the most gold, adding 1,136 tonnes to their reserves in 2022. Gold prices often move in the opposite direction of the US Dollar and riskier assets. Factors like geopolitical issues and interest rates can affect gold prices, which are mainly quoted in USD. Today’s slight decline in gold prices should be taken as a consolidation rather than a reversal. Gold has performed well throughout 2025, and this minor dip appears to be influenced by temporary strength in the stock market. Traders dealing in derivatives might view this as a chance to reassess their positions rather than a reason to be pessimistic.

Market Expectations For Interest Rates

A key driver for gold’s price is the market’s expectation of upcoming interest rate cuts from the US Federal Reserve. The latest US inflation report for November 2025 showed that core CPI dropped to 3.1%, leading futures markets to increase the likelihood of a rate cut by March 2026. Lower expected rates make gold, a non-yielding asset, more appealing. However, the recent risk-on sentiment that pushed the S&P 500 to record highs last week is creating challenges for safe-haven assets. The market’s volatility index, the VIX, recently fell to 14, indicating that traders are more comfortable with stocks than gold at the moment. However, any hint of a stock market correction could quickly redirect funds back into gold. We should also consider the steady demand from central banks, which supports gold prices. Following record buying in 2022, the World Gold Council’s Q3 2025 report confirmed that central banks in emerging markets continue to purchase gold at high rates. This strong demand helps counter any selling from short-term traders. For those involved in derivatives trading, this suggests seizing opportunities that could profit from a potential rise in volatility. The implied volatility for gold options is low right now, making this a good time to buy call options for a potential rally in the new year. Traders might also consider put options to protect against a possible downward correction below crucial technical levels. It’s essential to keep an eye on the US Dollar’s performance in the coming weeks. The US Dollar Index (DXY) is struggling to remain above 104 as rate cut expectations grow. A significant drop in the dollar would likely serve as a catalyst for gold to continue its upward movement toward previous highs. Create your live VT Markets account and start trading now.

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