Gold prices in Malaysia increased on Monday, as reported by FXStreet. The price hit 578.98 Malaysian Ringgits (MYR) per gram, up from MYR 577.73 on Friday. The price of gold per tola rose to MYR 6,753.10 from MYR 6,738.47 on Friday. FXStreet calculates these prices by adjusting international rates (USD/MYR) for the local currency and measurement.

Gold as a Safe Haven Asset

Gold is seen as a safe-haven asset in uncertain times and is commonly used to protect against inflation. Central banks hold large gold reserves, adding 1,136 tonnes worth $70 billion in 2022, the highest annual purchase ever. Gold prices usually move opposite to the US Dollar and Treasuries. They tend to rise when the Dollar falls. Market instability or lower interest rates can push gold prices higher, while higher interest rates might keep prices down. All prices provided are for general reference and may vary slightly from local rates. Gold FAQ details serve informational purposes only and should not be taken as investment advice. All investment decisions should be made independently while considering the risks involved. Gold is showing strength today, continuing a recent trend. This increase is mostly due to a weaker US Dollar, which is falling against other major currencies. The Dollar Index (DXY) has recently dropped below 103, a significant fall from earlier highs, making dollar-priced gold cheaper for foreign buyers.

Impact of Interest Rates and Central Bank Demand

A major factor influencing these changes is the outlook on interest rates. With the latest US inflation figures for September 2025 coming in lower than expected at 2.8%, markets now anticipate possible rate cuts from the Federal Reserve in early 2026. As gold doesn’t yield interest, it becomes more appealing when interest rates are expected to drop. We also see strong demand from central banks, which are buying more gold. Recent data from the World Gold Council shows that central banks added over 300 tonnes to their reserves in the third quarter of 2025, following record purchases in 2022. This ongoing demand, combined with rising geopolitical tensions in Eastern Europe and the South China Sea, strengthens gold’s status as a safe-haven asset. For traders using derivatives, this environment suggests considering long positions. Buying call options on gold futures or gold ETFs with expirations in early 2026, like the January or February contracts, could be a smart move to benefit from expected price increases. This strategy carries defined risk while providing upside potential. Alternatively, traders might explore bull call spreads to lower initial costs. By purchasing a call option and simultaneously selling a higher-strike call option, the premium paid is reduced, though potential profits are capped. This option suits those who expect a steady but moderate rise in gold prices over the coming weeks. Create your live VT Markets account and start trading now.

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