Gold prices in Malaysia stayed steady on Friday. The price per gram was 557.08 Malaysian Ringgits (MYR), a slight rise from 556.65 MYR on Thursday. The price per tola was stable at 6,497.66 MYR, compared to 6,492.65 MYR the previous day. Gold is often used as a safe investment and currency. It tends to remain stable during uncertain times. Central banks are the largest holders of gold, adding 1,136 tonnes to their reserves in 2022, which helps stabilize currencies. Countries like China, India, and Turkey have rapidly increased their gold reserves.

The Correlation With The US Dollar

Gold usually moves in the opposite direction of the US Dollar and US Treasuries. When the Dollar weakens, Gold prices often rise. During stock market rallies, Gold prices generally fall, while they increase during market downturns. Geopolitical tensions and recessions can drive Gold prices up due to its appeal as a safe asset. Since Gold does not earn interest, lower interest rates usually boost Gold prices, while higher rates tend to lower them. The price of Gold is also sensitive to the US Dollar’s strength, as Gold is priced in dollars (XAU/USD). Gold prices are currently stable around 557 MYR per gram, indicating a period of consolidation that may lead to significant market movements. Traders are observing this phase closely for any triggers that might break the current price range. The market is quiet as we await important economic data next week.

The Impact Of Central Bank Purchases

This price stability comes as the US Dollar Index (DXY) has weakened, dropping to 101.5 in late November 2025, its lowest level this year. Historically, a weaker dollar tends to support Gold prices, as seen in late 2023. Signs of a slowing US economy could boost Gold prices even more. Central banks have consistently increased their purchases of gold, a trend initiated by record buying in 2022. Recent reports from Q3 2025 reveal that central banks worldwide added another 280 tonnes to their reserves, indicating ongoing demand and providing a strong price foundation. This institutional buying is a key reason we expect upward pressure on prices. For derivative traders, the current low volatility makes options strategies appealing. We suggest buying long-dated call options to prepare for a potential rally in early 2026, fueled by expected interest rate cuts. A long straddle could also be a good strategy to profit from a breakout in either direction after next week’s inflation report. The main risk to this outlook is any unexpected hawkish stance from the US Federal Reserve, which could strengthen the dollar and pressure Gold prices. A significant drop below recent support levels may indicate a change in market sentiment. Traders should consider protective puts to safeguard their long positions against any sudden downturns. Create your live VT Markets account and start trading now.

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