Gold prices in the Philippines fell on Monday, based on FXStreet data. Gold was priced at PHP 9,274.39 per gram, down from PHP 9,378.88 on Friday. Gold also slipped to PHP 108,174.30 per tola from PHP 109,393.40 on Friday. The listed reference prices were PHP 92,747.66 for 10 grams and PHP 288,475.40 per troy ounce. FXStreet calculates local gold prices by converting international prices using the USD/PHP exchange rate and local measurement units. Prices are updated daily using market rates at the time of publication, and local rates may vary slightly. Central banks hold the largest gold reserves. World Gold Council data shows central banks added 1,136 tonnes of gold worth about $70 billion in 2022, the biggest annual purchase since records began. Gold often moves in the opposite direction of the US Dollar and US Treasuries. It can also move against risk assets. Its price can change with geopolitical events, recession worries, interest rates, and swings in the US Dollar because gold is priced in dollars (XAU/USD). This small dip in gold is less important than the bigger economic trend. The main drivers matter more, especially shifting expectations for US interest rates through the rest of 2026. The slight drop is a good time to step back and review the forces shaping the market. We think the US Federal Reserve is close to the end of its tightening cycle, which has been underway since 2024. Inflation data for January 2026 showed core inflation finally cooling. The Consumer Price Index fell to a two-year low of 2.5%. This points to possible rate cuts in the second half of the year. If that happens, the US dollar could weaken and gold prices could rise. With that in mind, we should consider buying call options on gold futures that expire in late 2026. This gives upside exposure while capping the initial risk at the premium paid. A move above the key $2,450 per ounce level—a resistance area seen in late 2025—looks more likely if the Fed clearly shifts to a more dovish stance. Central bank buying also continues to support the market. Central banks bought a record 1,136 tonnes in 2022, and final 2025 figures showed another 950 tonnes added to official reserves. This steady demand suggests that large price declines may attract buyers. That could make selling out-of-the-money put options appealing as a way to collect premium. Geopolitical tensions are also helping to support prices. Uncertainty has increased again around global shipping routes and upcoming elections in several major economies. During the 2024 global trade disputes, gold jumped as a key safe-haven asset. Because these risks remain, keeping some exposure to gold volatility through strategies like straddles could pay off. Gold does not pay interest, so it tends to look better when interest rates fall. The high-rate environment in 2025 limited gold’s upside. Now, a shift in monetary policy is the main catalyst to watch. We should be ready to use futures to build a core long position in the coming weeks, in anticipation of that change.

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