Gold prices in Malaysia rose on Tuesday, as reported by FXStreet. The price per gram hit 644.94 Malaysian Ringgits (MYR), up from 642.42 MYR on Monday. The price for one tola increased to 7,522.42 MYR, compared to 7,493.02 MYR the day before. FXStreet determines its gold prices based on global rates and adjusts them using the USD/MYR exchange and local measurement units. Keep in mind that these prices are reference points and might differ from local rates.

Gold As A Store Of Value

Gold is known as a reliable store of value and is often seen as a safe-haven asset during tough times. It helps protect against inflation and currency decline. Central banks are the main holders of gold, building large reserves to stabilize their economies. In 2022, central banks bought 1,136 tonnes, worth about $70 billion, setting a record for yearly purchases. Gold typically rises when the US Dollar and US Treasuries weaken. Factors like geopolitical tensions and lower interest rates can also push gold prices up because of its safe-haven status. On the flip side, a strong US Dollar usually limits gold price increases. With gold trending upwards today, January 27, 2026, we are reminded of its importance as a safe-haven asset. This small price increase indicates that traders are seeking protection amid broader market uncertainty. Derivative traders should keep an eye on this, as even minor changes can hint at larger trends toward risk-averse assets.

Impact Of US Federal Reserve Rate Cuts

In 2025, the U.S. Federal Reserve made several rate cuts, which has weakened the U.S. Dollar. The Dollar Index (DXY) has softened from its 2024 highs and has been around the 101 mark recently. This weaker dollar situation provides a boost for gold, making it less expensive for buyers using other currencies. Demand from central banks continues to support the gold market, a trend that has strengthened beyond the record levels seen in 2022. In 2025, central banks, especially the People’s Bank of China, added over 950 tonnes to global reserves. This ongoing buying reduces market supply and helps keep prices stable, minimizing risk for traders. Although inflation has eased, the core Consumer Price Index (CPI) in the U.S. has stayed above the 2% target for most of last year, averaging about 2.9% in the last quarter of 2025. This persistent inflation, along with ongoing geopolitical issues, makes gold attractive as both an inflation hedge and a crisis asset. Therefore, traders should consider strategies that could take advantage of sudden price spikes due to unpredictable events in the weeks ahead. Create your live VT Markets account and start trading now.

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