Gold prices in the Philippines rose on Tuesday, reaching 9,615.74 Philippine Pesos (PHP) per gram, up from 9,602.19 PHP the day before. The price per tola also increased to PHP 112,155.80, compared to PHP 111,998.10 earlier. FXStreet calculates these prices by converting global rates to the local currency and updates them daily. However, actual local prices may vary slightly.

Gold as a Safe Haven

Gold is seen as a safe-haven asset, often used in unstable economic times. Central banks hold a lot of gold, adding 1,136 tonnes worth $70 billion to their reserves in 2022, the highest amount ever recorded in a single year. Gold prices can be affected by factors such as geopolitical issues and interest rates. Typically, when the US Dollar weakens, gold prices tend to increase. Currently, gold prices are rising, reflecting a larger trend beyond daily changes. This rise is supported by significant and steady buying from central banks, which added over 800 tonnes to their reserves in 2025, continuing the record-setting pace. This strong demand provides a solid foundation for prices, boosting confidence in a positive trend.

Fed Influence on Gold Prices

A key factor to watch is the US Federal Reserve. A weaker dollar often pushes gold prices up. Recent comments from Fed officials suggest that a rate cut may happen soon, marking a big shift from the tightening seen in 2024 and 2025. This change could lower the value of the US dollar, making gold more appealing. As traders, we must also recognize that inflation remains strong. The latest US Consumer Price Index (CPI) report shows core inflation at 3.2%, which is more stubborn than expected. This situation makes gold a good hedge against declining currency value. Rising geopolitical tensions in crucial shipping routes are also increasing gold’s attractiveness as a safe-haven asset. In this climate, buying call options on gold futures or ETFs could provide higher potential returns with set risks. For those with a moderately positive outlook, selling out-of-the-money put options can generate income while expressing confidence that prices will not fall significantly. These strategies let us take advantage of expected upward trends and increased market volatility. Create your live VT Markets account and start trading now.

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