Gold prices in the Philippines rose on Wednesday to 7,233.92 Philippine Pesos (PHP) per gram, up from 7,222.90 PHP the day before. The price per tola increased to 84,376.70 PHP, up from 84,246.53 PHP. Gold prices in the Philippines are affected by currency changes and market rates, which are based on international prices (USD/PHP) shown by FXStreet. These rates are for reference only, and actual prices in local markets may differ.

Gold As A Store Of Value

Gold is often seen as a safe investment during tough economic times. It acts as a protection against rising prices and falling currencies, keeping its value without depending on a specific issuer. Central banks are the biggest holders of gold, and their gold purchases can help build confidence in the economy. In 2022, they bought 1,136 tonnes of gold, valued around $70 billion. Gold prices usually move in the opposite direction of the US Dollar and US Treasuries. When there are fears about geopolitical issues or a recession, gold prices can rise. A strong US Dollar tends to push gold prices down, while a weaker Dollar can have the opposite effect. Currently, we see a rise in gold prices, reflecting the wider market and not just local demand. This increase reminds us to watch the factors that influence gold’s worth, especially as we approach the end of 2025.

The Impact Of A Weakening US Dollar

A major reason for the increase is the weakening US Dollar, which has dropped almost 2% against other currencies in the past month. This shift follows recent US inflation data for August 2025, which showed a 2.8% rise. This gives the Federal Reserve a reason to pause its rate hikes. Gold, which does not earn interest, becomes more attractive when interest rates level off or decrease. This situation is similar to late 2023 when expectations of changes from the Fed led to a significant rise in gold prices. Now, the general view is that the Fed will keep rates steady for the rest of the year, which is putting pressure on the Dollar and supporting precious metals. For those trading derivatives, this environment makes long positions in gold more appealing. Additionally, ongoing geopolitical tensions and a global manufacturing slowdown are increasing the attractiveness of gold as a safe investment. Central banks are continuing their buying spree from 2022, with the World Gold Council noting that emerging market banks added 200 tonnes in the second quarter of 2025. This consistent demand from institutions helps keep prices stable. In light of these conditions, it’s worth considering strategies that can benefit from rising prices and increased fluctuations. Options like buying call options on gold futures or exchange-traded funds may provide good opportunities with controlled risks. Selling put options can also be a strategy for those who think that support from central banks will prevent significant price drops. Create your live VT Markets account and start trading now.

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