Gold prices in Malaysia went up on Tuesday, based on FXStreet data. The price per gram increased to 610.45 Malaysian Ringgits (MYR) from MYR 608.73 on Monday. The price per tola also rose to MYR 7,120.10, up from MYR 7,100.12 the previous day. FXStreet determines these prices by applying international rates to local currency and units, offering daily updates.

Gold As A Secure Asset

Gold is often viewed as a safe investment, especially during uncertain times. It helps protect against inflation and decreases in currency value. Central banks are significant holders of gold, buying 1,136 tonnes worth about $70 billion in 2022, the highest annual purchase ever. Gold prices tend to move in the opposite direction of the US Dollar and riskier assets. Various factors influence gold prices, including geopolitical events and interest rates. Typically, gold prices increase when the Dollar weakens. FXStreet emphasizes that this information is for reference only and should not be seen as investment advice. Prices can vary locally, so readers should research thoroughly before making financial choices. Investing involves risks, including the possibility of losing the principal amount. The recent US diplomatic actions concerning Greenland have created significant uncertainty in the markets, a factor not accounted for in our 2026 projections. We are witnessing a typical flight to safety, with gold prices reaching new records above $4,700 an ounce. This reflects a major adjustment in geopolitical risk, more than doubling prices compared to 2024 levels.

Market Reactions And Strategies

This situation is intensified by the ongoing weakness of the US Dollar, which has been declining since late 2025. At the same time, central banks continue their aggressive buying, building on the record 1,136 tonnes purchased in 2022 and further accelerating into 2025. The latest data from the World Gold Council indicates this trend is ongoing, providing strong support for gold prices. For traders, this means that implied volatility on gold options has surged, with the CBOE Gold Volatility Index (GVZ) hitting multi-year highs. This spike makes long-term call options more expensive, mirroring the market’s anxiety and enthusiasm. Elevated volatility creates opportunities for those who can accurately predict short-term movements. Given the high costs, we should think about using call spreads to make bullish bets more affordable and limit our risk. It may be wise to focus on strikes around the $5,000 psychological level for February and March contracts. We must also keep an eye out for any signs of diplomatic easing, as an unexpected change could lead to a rapid drop in prices and diminish option premiums. Create your live VT Markets account and start trading now.

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