Gold prices in Malaysia fell on Tuesday to 563.12 Malaysian Ringgits (MYR) per gram, down from 565.12 MYR per gram the day before. The price per tola also dropped to 6,568.14 MYR from 6,591.45 MYR previously. FXStreet calculates gold prices by adjusting international rates to the local market and updating measurement units daily.

Gold As A Safe Haven Asset

Gold is seen as a safe-haven asset. It is a protection against inflation and currency decline. Central banks are the largest holders and added 1,136 tonnes of gold worth around $70 billion to their reserves in 2022. Gold prices often move in the opposite direction to the US Dollar and US Treasuries. When the US Dollar weakens, gold prices typically rise, providing a means of diversification during tough times. Geopolitical instability and interest rates also affect gold prices. A stronger US Dollar can lower gold prices, while a weaker Dollar might increase them. Additionally, gold prices often rise when riskier assets like stocks decline. Gold’s price dropped slightly today, December 16, 2025. We see this as a small pullback rather than a shift in the overall trend. This dip could be a good opportunity for traders who expect prices to rise in the coming weeks. The factors supporting gold’s value remain strong. The main driving force is the expectation of US interest rate cuts in early 2026, leading to a weaker US Dollar. The US Dollar Index (DXY) has fallen below 102, significantly lower than its highs earlier in 2025. Since gold is priced in dollars, this weakness could help boost gold prices.

Central Bank Activity And Economic Indicators

Another factor to consider is the ongoing buying by central banks, continuing strongly since the record levels in 2022. Recent data from the World Gold Council for the third quarter of 2025 shows that central banks added another 220 tonnes to their reserves. This steady demand helps to establish a strong price floor for gold. Looking ahead, we are closely monitoring the upcoming US inflation and employment data. Any signs of economic weakness could increase expectations for a rate cut, making gold more appealing as a yield-less asset. Traders should be ready for increased volatility around these important data releases. Concerns about a global economic slowdown in 2026 are also driving investors toward safe-haven assets. After a solid performance in equities this year, many aim to protect their portfolios against potential downturns. Gold’s inverse relationship with riskier assets makes it a leading choice for this purpose. In the coming weeks, we suggest that traders use options to build a bullish position. Buying call options set to expire in February or March 2026 allows them to benefit from expected price increases while minimizing risk. Thinner trading volumes during the holiday season may also lead to larger price swings. Create your live VT Markets account and start trading now.

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