Gold prices in the Philippines dropped on Thursday. According to FXStreet, the price fell to 8,016.64 Philippine Pesos (PHP) per gram, down from 8,047.20 PHP the day before. The price for a tola also decreased from 93,861.73 PHP to 93,505.34 PHP. FXStreet calculates these prices by converting international rates (USD/PHP) to PHP, updating them daily. This data reflects current market rates, but local prices may differ slightly.

The Role of Gold as a Safe-Haven Asset

Gold is viewed as a safe-haven asset and a store of value. Investors often turn to gold during inflation or when currencies lose value. Central banks hold the most gold, building reserves to stabilize their economies during tough times. In 2022, they purchased 1,136 tonnes of gold, the highest annual amount recorded. Gold’s price typically moves opposite to that of the US Dollar and US Treasuries. When the Dollar declines, gold prices often rise. Geopolitical tensions or fears of recession can also drive up gold prices. Generally, gold prices increase when interest rates are lower and are quoted in US Dollars (XAU/USD), influenced by the Dollar’s strength. As of December 11, 2025, gold prices are seeing a small daily decline. This minor drop is likely just temporary, not a shift in the overall trend. The broader economic landscape seems to favor gold as a valuable asset. A key factor is the changing expectations around interest rates. After maintaining steady rates in the last three meetings, recent comments from Federal Reserve officials suggest a shift is coming. Futures markets now show a 70% chance of a rate cut in the first quarter of 2026. Gold, which doesn’t yield interest, becomes more appealing when rates are expected to drop.

Impact of Inflation and Dollar Weakness

This outlook is further supported by ongoing inflation and a weaker US dollar. The latest Consumer Price Index (CPI) data for November 2025 indicates that inflation stands at 3.4%. While this is lower than the highs from 2023, it remains above the Federal Reserve’s target. As a result, the US Dollar Index (DXY) has weakened, falling from about 105 earlier this year to around 101.5, which helps boost gold prices. Additionally, the steady demand from central banks, a trend that started gaining momentum in 2022, cannot be overlooked. The World Gold Council reported that central banks globally added 280 tonnes to their reserves in the third quarter of 2025. This buying trend supports gold prices and highlights ongoing distrust in fiat currencies. For traders, these macroeconomic trends suggest a positive outlook for gold as we head into the new year. Price dips, like today’s, may offer good chances to buy long positions or call options that expire in the first and second quarters of 2026. Expect volatility to rise as we approach the next Federal Reserve meeting, so consider this in your trading strategies. Reflecting on the period after the 2008 financial crisis provides useful insight. The combination of low interest rates and economic uncertainty led to a long bull market for gold. We might be witnessing the beginnings of a similar situation now. Create your live VT Markets account and start trading now.

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