Gold prices in the Philippines fell on Monday, according to FXStreet data. The price per gram dropped to 8,544.30 PHP from 8,573.07 PHP on Friday. Similarly, the price per tola decreased to 99,662.10 PHP from 99,994.55 PHP.

FXStreet Overview

FXStreet updates international gold prices daily, converting them to Philippine Pesos based on current market rates. These prices are for guidance and may experience slight local variations. Gold has long been a safe store of value and a means of exchange. Today, it is viewed as a secure investment during economic instability and serves as a protection against inflation and falling currencies. Central banks are the biggest buyers of gold, which strengthens economies and currencies. In 2022, they added 1,136 tonnes of gold, about $70 billion, to their reserves. Key buyers include central banks from China, India, and Turkey. Gold typically rises in value when the US Dollar weakens and tends to go down when risk assets like stocks are doing well. Factors like geopolitical tensions or concerns about a recession can drive gold prices higher, along with lower interest rates. The recent slight drop in gold prices might be seen as an opportunity rather than a sign of weakness. This small decline could be just background noise before a potential increase in the coming weeks. Gold remains a key investment to guard against currency decline, especially in the current economic climate.

Impact of US Federal Reserve Decisions

As we approach the end of 2025, we are closely monitoring the US Federal Reserve. After the significant rate hikes in 2023 and 2024, the Fed’s recent meetings suggest a shift towards lower rates, with markets expecting at least two rate cuts in the first half of 2026. Gold, which does not yield interest, tends to do well when rates are likely to fall. This expected change in monetary policy is putting pressure on the US Dollar. The Dollar Index (DXY) has fallen below 98, down from highs above 105 in prior years. A weaker dollar typically increases gold’s appeal, making it cheaper for foreign buyers. Demand from central banks continues to support gold prices. While not at the record levels of 2022, the World Gold Council’s Q3 2025 report showed that central banks, especially from emerging markets, have added over 800 tonnes to their reserves this year. This trend of moving away from the dollar shows that institutional investors continue to favor gold. In broader markets, stock rallies seem to be slowing, with the S&P 500 moving sideways for the last quarter. This indicates growing caution among investors as we move into 2026. A sell-off in riskier assets often leads to increased interest in safe assets like gold. Create your live VT Markets account and start trading now.

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