Gold prices in Malaysia went up on Monday, hitting 607.77 Malaysian Ringgits (MYR) per gram, up from 597.22 MYR on Friday. The price for Gold also rose to 7,088.94 MYR per tola, compared to 6,965.83 MYR before. FXStreet adjusts international Gold prices to local currency and units, updating daily based on market conditions. The prices shown are reference points, and local rates may vary a bit.

Gold as a Safe Haven Asset

Gold has long been seen as a safe-haven asset and a reliable store of value, especially in tough economic times. It helps protect against inflation and currency loss. Central banks hold a large amount of Gold to diversify their reserves and strengthen their currencies. In 2022, they bought 1,136 tonnes of Gold, valued at around $70 billion, marking the highest annual purchase on record. Gold usually moves opposite to the US Dollar and Treasuries. Economic instability or lower interest rates often cause Gold prices to rise, while a strong Dollar can keep prices stable. The price of Gold is frequently influenced by its valuation in US Dollars (XAU/USD). The recent rise to 607.77 MYR per gram today indicates a growing interest in safe-haven assets. This change comes as trade tensions rise and global manufacturing activity shows slight declines. For traders using derivatives, now might be a good time to consider long positions on gold.

Gold and the US Dollar

This price movement closely relates to the US Dollar, which has been weakening. The US Dollar Index (DXY) has dropped below 102, a notable decline from its highs in late 2025. This weaker Dollar and uncertainty around the Federal Reserve’s next decision make gold more appealing. Strong demand from central banks continues to support Gold’s price. Following the record purchases of 1,136 tonnes in 2022, emerging market banks, especially the People’s Bank of China, added another 290 tonnes to their reserves through 2025. This continuous buying suggests that any significant price drops will likely be met with strong support. This situation typically moves in the opposite direction of risk assets, as the S&P 500 has pulled back about 3% from its highs earlier this month. Traders might consider buying call options on gold futures to take advantage of possible upward momentum while limiting their risk. Due to current volatility, using call spreads could also be a smart way to lower initial trade costs. Reflecting on the sudden price surges during geopolitical and inflationary pressures in 2022 and 2023, we see that Gold can rise quickly. The recent price increase could mark the beginning of a longer trend if global uncertainty continues. Thus, selling cash-secured puts at key support levels could be a good strategy for traders to earn premium while preparing for a potential long entry. Create your live VT Markets account and start trading now.

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