Gold prices in Malaysia have increased, as reported by FXStreet. The cost for one gram rose to 576.03 Malaysian Ringgits (MYR) from 571.94 MYR, while the price for one tola went up to 6,718.69 MYR from 6,671.03 MYR. FXStreet adjusts international gold prices to fit Malaysia’s local currency and measurements. These prices are updated daily and may vary slightly from actual local rates.

Gold As A Safe Haven

Gold is often seen as a safe investment, especially during tough times. It acts as a protection against inflation and the decline of currencies. Central banks hold the majority of the world’s gold to help stabilize their currencies and diversify their reserves. In 2022, these banks added 1,136 tonnes of gold, worth about $70 billion, with countries like China, India, and Turkey increasing their gold reserves. Gold prices usually move in the opposite direction of the US Dollar and US Treasuries. When the Dollar weakens, gold prices tend to rise. Likewise, when stock markets perform well, gold prices can drop. Gold generally increases in value when interest rates are low and is influenced by global instability and fears of recession. The price of gold, usually calculated in dollars, changes based on various factors, including how the US Dollar performs.

Gold Market Trends

Gold prices are showing strength today, suggesting this isn’t just a temporary spike. The metal’s role as a safeguard against inflation and currency decline is increasingly important. This trend indicates a growing market preference for safe-haven assets. The outlook for US interest rates is also favorable for gold. Following the aggressive rate hikes that ended in 2024, futures markets now predict over a 70% chance of a rate cut by the second quarter of 2026, as economic growth slows. Gold, which doesn’t earn interest, becomes more appealing when rates are expected to drop. This perspective is putting pressure on the US Dollar. The Dollar Index (DXY) has dipped more than 3% in the past quarter, making gold cheaper for those using other currencies and boosting global demand. We believe this downward pressure on the dollar will persist as the Federal Reserve hints at a more cautious approach. Institutional buying is also a strong support for gold prices. Central banks added a record 1,037 tonnes in 2022, and this trend has continued into 2024, with the World Gold Council noting another 800 tonnes added to official reserves last year. This shift away from the dollar by banks in emerging markets greatly supports gold prices in the long run. Geopolitical tensions and signs of a slowing global economy are driving investors towards safe investments. Increased volatility in stock markets indicates a classic move to quality. This environment underscores gold’s importance as a portfolio diversifier during uncertain times. For traders, this suggests preparing for further price rises in the upcoming weeks. We believe that long call options or bull call spreads on gold futures offer a clear-risk way to benefit from this anticipated movement. We are focusing on the $2,150 per ounce level as a key support point for starting new trades. Create your live VT Markets account and start trading now.

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