Gold prices in Malaysia rose on Tuesday, according to FXStreet. The price per gram went up to 599.64 Malaysian Ringgits (MYR) from MYR 599.04 the day before. The cost per tola increased to MYR 6,994.10 from MYR 6,987.04. A troy ounce of gold is now priced at MYR 18,650.91. FXStreet updates these prices daily, using international USD/MYR rates to inform local costs.

Gold As A Safe Haven Asset

Gold has long been valued as a medium of exchange and remains a popular safe-haven asset. Central banks are among its biggest holders; they bought 1,136 tonnes in 2022 to diversify their reserves. Gold’s value often rises when the US Dollar and Treasuries decline. It serves as a hedge during economic uncertainty or inflation. Gold prices can also be affected by interest rates and geopolitical stability. Lower interest rates usually increase gold’s appeal, while a strong US Dollar may keep prices down. Additionally, geopolitical tensions can raise gold prices due to its safe-haven status. The recent small increase in gold prices to nearly 600 MYR per gram highlights a positive trend. It’s not just about today’s price, but also about its role in the larger economic picture. This steady rise shows strong market foundations, suggesting that traders should prepare for this momentum.

Central Bank Accumulation

Gold is performing as a traditional safe-haven asset, especially with weak global manufacturing PMI data from the fourth quarter of 2025 and ongoing geopolitical issues. Such uncertainty is likely to create more volatility, making long-dated call options a good way to benefit while managing risk. We think the market is currently underestimating the chances of a significant risk-off event in the first half of this year. We also see the consistent accumulation of gold by central banks, a trend that began in earnest in 2022 and continues to grow. After record purchases in 2023 and 2024, central banks added another 950 tonnes to their reserves in 2025, ensuring strong demand. This creates a solid price foundation, making short selling or selling uncovered calls very risky. Right now, the outlook for interest rates is crucial. The U.S. Federal Reserve has indicated a shift away from its previous tightening. Market expectations now suggest a 75% chance of at least one rate cut by the third quarter of 2026. As a non-yielding asset, gold becomes more attractive when interest rates are set to drop. This expectation is also weakening the U.S. Dollar, a key factor in gold’s strength. The Dollar Index (DXY) has been trading below 102, which is significantly lower than previous highs. This negative correlation offers strong support for gold. In this environment, strategies like bull call spreads can help us take advantage of a steady rise in gold prices. Create your live VT Markets account and start trading now.

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