Gold prices in Malaysia fell on Thursday, according to FXStreet data. The price per gram decreased to 556.04 Malaysian Ringgits (MYR), down from 558.51 MYR the day before. The price per tola also dropped to MYR 6,485.75, down from MYR 6,514.41. These prices reflect international gold values and are updated daily to stay in line with market changes.

Gold as a Safe Haven

Gold is often seen as a safe investment during tough times, such as when currencies lose value or inflation rises. When there is political instability or worries about the economy, gold prices tend to go up because many people view gold as a secure option. Central banks hold a significant amount of gold. In 2022, they bought 1,136 tonnes, worth about $70 billion. This was the largest annual purchase ever recorded. Countries like China, India, and Turkey are building up their gold reserves. Gold prices usually move in the opposite direction of the US Dollar and other market assets. If the US Dollar loses value, gold prices often rise. Conversely, a strong Dollar can limit gold price increases. Changes in interest rates also influence gold demand; lower rates generally lead to higher prices.

Fed’s Impact on Gold Prices

Today, December 11, 2025, gold prices have slightly dropped following yesterday’s Federal Reserve meeting. The Fed decided to cut rates, but the market sees their future guidance as “hawkish,” suggesting there may be fewer cuts in 2026 than anticipated. This has caused the US Dollar to strengthen, which normally puts downward pressure on gold. The Fed’s cautious approach is supported by recent economic data from November 2025. Inflation remains high, with the latest Consumer Price Index report showing a 3.3% annual increase, slightly above expectations. This indicates that the battle against inflation is still ongoing, leading the central bank to avoid signaling major rate cuts anytime soon. However, we should consider the strong long-term trend that has boosted gold prices in recent years. Central banks bought a record amount of 1,136 tonnes in 2022 and continued this trend through 2023 and 2024, aiming to reduce dependence on the US Dollar. This steady demand helps keep prices high and is a key reason why gold is trading at these elevated levels. For traders dealing in derivatives, this situation presents an interesting opportunity as the year comes to a close. The current price drop could be a chance for those who believe that ongoing central bank buying and geopolitical uncertainty will outweigh the Fed’s current position. Selling out-of-the-money put options might allow traders to earn money while betting that gold prices won’t decrease significantly from here. On the flip side, the stronger US Dollar and the Fed’s resolve may lead to more short-term declines for gold. This indicates that implied volatility could rise in the coming weeks as these two forces interact. Traders expecting significant price movements but unsure of the direction may want to consider options strategies that perform well during price swings, such as long straddles. Create your live VT Markets account and start trading now.

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