Gold prices in Malaysia dropped on Monday, based on data from FXStreet. The price fell to 550.62 MYR per gram, down from 557.16 MYR on Friday. The price per tola also went down, now at 6,422.33 MYR, compared to 6,498.65 MYR before. Gold is offered in various forms, such as 550.62 MYR per gram and 17,126.19 MYR per Troy Ounce.

Updates From FXStreet

FXStreet provides daily updates on gold prices by converting international USD/MYR rates to local currency. These prices serve as a guideline, but actual local rates may differ. Gold is often seen as a safe investment since it protects against inflation and declines in currency value. Central banks are the biggest gold holders, adding 1,136 tonnes to their reserves in 2022. Typically, gold prices move opposite to the value of the US Dollar and US Treasuries. When the Dollar weakens, gold prices frequently rise, making it a favored asset. Producers pay attention to shifts caused by geopolitical issues, economic slowdowns, and changes in the US Dollar. Lower interest rates often encourage gold investments, whereas a stronger Dollar may pull prices down. Even though gold prices dipped slightly today, this may be a good chance rather than a sign of a long-term decline. The main reasons for gold’s value remain strong, especially as a safeguard against currency depreciation and economic instability. This temporary dip is happening while the US Dollar Index (DXY) stays above the 105 level, a high we’ve been tracking for several years.

Central Bank Demand

Now, the market is focused on future interest rates, especially from the US Federal Reserve. After a series of aggressive rate hikes in 2023 and 2024, signs of a slowing global economy have led to speculation that rate cuts might come by mid-2026. Since gold does not earn interest, any indication of lower rates would make gold more appealing to investors. Demand from central banks continues to support gold prices. In 2022, central banks bought a record 1,082 tonnes, and the World Gold Council noted this strong demand continued through 2023 and 2024, especially from emerging markets. This consistent buying helps stabilize prices during times when investor confidence is low. Gold’s reputation as a safe asset is particularly important now. We face ongoing geopolitical tensions, and recent manufacturing PMI data from Europe and China indicate economic slowdown, raising concerns about a global recession. In unclear times, investors tend to flock to assets that are seen as reliable stores of value. For traders dealing with derivatives, the current price drop might be a chance to prepare for potential gains in the coming weeks. Bullish strategies, like buying call options or setting up long futures contracts, could be beneficial if expectations for future rate cuts strengthen. We should keep an eye on upcoming US inflation and employment data, as any weaknesses there would likely prompt a dovish turn from the Fed and weaken the Dollar. Create your live VT Markets account and start trading now.

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