Gold prices in the Philippines dropped on Friday, as reported by FXStreet. The price per gram went down to 8,784.39 Philippine Pesos (PHP) from 8,796.89 the day before. The price per tola also fell, decreasing to PHP 102,458.10 from PHP 102,605.10. The price of gold per Troy ounce was PHP 273,225.10. FXStreet converts international gold prices to local currency using the USD/PHP rate.

A Safe Haven Asset

Gold is seen as a safe-haven asset and a way to protect against inflation. Central banks are the biggest buyers of gold, using it to diversify their reserves and support local currencies in uncertain times. In 2022, central banks bought 1,136 tonnes of gold worth around $70 billion. Gold prices often move in the opposite direction of the US Dollar and US Treasuries. They can also change based on geopolitical events and economic conditions. Factors like interest rates, currency performance, and investor demand affect gold prices. FXStreet notes that market information is for reference only and may vary. Readers should do their own research before investing in gold or other assets. Currently, we are seeing a small decline in gold prices. This seems to be a minor adjustment rather than the beginning of a big downtrend. This short-term weakness is occurring as the US Dollar has weakened from its 2025 highs. This inverse relationship is important for our outlook in the coming weeks.

Market Expectations

The market now anticipates possible Federal Reserve rate cuts later this year. This outlook is backed by the December 2025 jobs report, which showed a slower labor market with only 155,000 jobs added. Last week’s inflation data, showing a Consumer Price Index (CPI) of 2.9% for the year, suggests that peak interest rates may be behind us. Lower interest rates usually make non-yielding gold more attractive. We must also keep in mind the strong demand that has kept prices steady. Throughout the chaos of 2023 and 2024, central banks were major buyers. The World Gold Council’s latest report for Q4 2025 indicates that this buying spree continued, with net purchases exceeding 950 tonnes for the year. This steady buying from official sources acts as a safety net against large price drops. In the coming weeks, this dip might be a chance to prepare for a future price increase. Buying call options or setting up bull call spreads could be a smart way to gain upside exposure while managing risk. Traders who already have long positions might want to consider buying out-of-the-money put options to protect against any sudden reversals due to geopolitical de-escalation. Create your live VT Markets account and start trading now.

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