Gold prices in Malaysia increased on Monday, according to FXStreet data. The price per gram rose to 577.34 Malaysian Ringgits (MYR), up from MYR 567.63 last Friday. Likewise, the cost per tola went from MYR 6,620.69 to MYR 6,733.99. FXStreet calculates local gold prices by using international USD/MYR rates in relation to Malaysian currency and units, updating the figures every day. The gold prices given here are for reference, as local prices may differ.

Importance of Gold as a Safe Haven

Gold has always been seen as a valuable medium of exchange and is now viewed as a safe-haven asset during uncertain times. It is considered a shield against inflation and currency devaluation, staying relevant because it does not rely on government backing. Central banks are the largest buyers of gold, using it to diversify their reserves and maintain economic trust. In 2022, central banks bought 1,136 tonnes of gold. Countries like China, India, and Turkey are rapidly increasing their gold reserves. Gold prices often rise when the US Dollar and Treasuries weaken. Important factors that influence gold prices include geopolitical tensions, economic conditions, and interest rates. Typically, a weak US Dollar helps boost gold prices. The recent increase in gold prices, now at MYR 577.34 per gram, is a part of a broader trend. This rise is closely connected to the weakening US Dollar, which fell over 2% against major currencies in late 2025. For traders, this connection remains a vital indicator of gold’s ongoing strength.

Market Dynamics and Trading Strategies

The main reason for these changes is the market’s expectation of future interest rate cuts by the U.S. Federal Reserve. After pausing its rate hikes in November 2025, futures markets now suggest there is over a 60% chance of a rate cut in the latter half of 2026. Lower interest rates reduce the opportunity cost of holding non-yielding gold, making it more appealing. There is also strong support from institutional buyers, which backs this positive outlook. Recent data from the World Gold Council revealed that central banks bought an additional 220 tonnes of gold in the third quarter of 2025, continuing the strong buying trend seen since 2022. This consistent demand from key players helps establish a solid price foundation. Geopolitical tensions, especially in the South China Sea, are pushing investors toward safe-haven assets. Following a significant stock market rally in 2025, there is now a shift from riskier equities to gold. This move toward safety acts as another boost for gold prices. For those trading derivatives, this situation indicates rising implied volatility, making options strategies attractive. We recommend buying call options or setting up bull call spreads on gold futures as a smart way to gain upside exposure while managing risks. This is a sensible approach given the uncertainty around when central bank policies may change. Traders holding futures positions should look to use any price dips as chances to increase their long positions. The previous highs from December 2025 are an important support level to monitor. A sustained break above current levels could lead to a significant price jump in the coming weeks. Create your live VT Markets account and start trading now.

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