Gold prices in Malaysia are up, currently at 569.10 Malaysian Ringgits (MYR) per gram, compared to 565.36 MYR last Friday. The price for a tola has increased to MYR 6,637.84 from MYR 6,594.25. FXStreet provides daily updates on Gold prices, using international rates (USD/MYR) and local metrics. Local prices may vary slightly. Gold is often seen as a safe investment during uncertain times and offers protection against inflation and currency drop.

Gold Buying by Central Banks

Central banks are significant buyers of Gold, purchasing 1,136 tonnes in 2022, worth about $70 billion. This was the largest annual purchase ever recorded. Countries like China, India, and Turkey are increasing their Gold reserves. Gold usually moves opposite to the US Dollar and US Treasuries—its value goes up when the Dollar is weak and down when the Dollar strengthens. Various factors affect Gold prices, including geopolitical issues, fears of recession, and interest rates. Since Gold is priced in dollars (XAU/USD), shifts in the Dollar impact Gold prices. When the Dollar is strong, Gold prices may fall; when it weakens, Gold prices often rise. The recent increase in Gold prices suggests we should pay attention in the coming weeks. This rise coincides with expectations that major central banks may stop raising interest rates, which is good for non-yielding assets like Gold. Recent US inflation data for November 2025 showed a lower-than-expected rate of 2.8%, raising speculation about a possible Federal Reserve rate cut in early 2026. This news has driven the US Dollar Index down to around 101.5, far lower than earlier highs. A weaker Dollar usually makes Gold cheaper for buyers using other currencies, increasing demand.

Strategies for Traders

For those trading derivatives, increasing long positions could be smart. Buying call options or setting up bull call spreads on Gold ETFs or futures could provide a cost-effective way to take advantage of potential price increases while managing risk. As we approach the next central bank meetings, implied volatility may rise, making these trades more appealing. Ongoing demand from official sources remains a strong support for Gold prices. Reports indicate that central banks bought over 950 tonnes through the third quarter of 2025, continuing the strong buying trend we saw in 2022 and 2023. This institutional buying helps stabilize the market. This situation contrasts sharply with the high-interest rate environment of 2024, which created challenges for Gold. The market is now shifting its expectations for 2026, and this changing sentiment is what traders should focus on. In the futures market, maintaining a long position seems wise, especially as pullbacks to key levels may present good entry points. With the current macroeconomic changes, dips are likely to be seen as buying chances. We should keep an eye on upcoming employment and inflation data for any updates to this outlook. Create your live VT Markets account and start trading now.

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