Gold prices in Malaysia rose on Monday. According to FXStreet, the price reached 576.40 MYR per gram, up from 569.11 MYR on Friday. The price per tola also increased to 6,723.00 MYR, compared to 6,638.01 MYR last Friday. Gold prices in Malaysia reflect international rates (USD/MYR) and are updated daily. These prices serve as a reference, and local rates may vary slightly.

Gold As A Safe Haven

Gold has always been a valuable asset and a way to exchange money. It is commonly seen as a safe option, especially during uncertain times. Gold protects against inflation and currency loss. Central banks hold large amounts of gold to stabilize currencies during economic challenges. In 2022, they bought 1,136 tonnes of gold, worth about $70 billion, the most ever recorded. Gold prices move in opposite directions to the US Dollar and Treasury yields. When the Dollar weakens, gold prices tend to rise, making gold a good way to diversify investments. Factors like global tensions, economic changes, interest rates, and Dollar performance affect gold prices. A strong Dollar can lower gold prices, while a weak Dollar usually raises them. As we near the end of 2025, gold is gaining strength, reflecting rising market worries. Recent data shows US Q4 GDP growth slowed to just 0.8%, prompting traders to seek safe assets like gold. This shows gold’s ongoing role as a safeguard in uncertain economic times.

Market Expectations

The market is anticipating a high chance of a Federal Reserve rate cut by March 2026, with the CME FedWatch tool indicating over a 70% likelihood. This expectation has driven the US Dollar Index (DXY) below the key 100 mark, down from 102 last month. A weaker dollar typically supports higher gold prices. Institutional buyers are showing strong support as well. The latest Q3 2025 report from the World Gold Council revealed that central banks, particularly China and India, added 260 tonnes to their gold reserves. This steady buying helps protect against sudden price drops. In this environment, traders should think about positioning for potential gains in the coming weeks. Bullish strategies, like purchasing call options on gold futures or ETFs, can help capture profits while minimizing risks. Implied volatility may rise as speculation about the Fed’s next steps grows. This situation marks a significant change from what we experienced in 2023 and 2024, when aggressive rate hikes limited gold’s growth. Now, with policies shifting back towards easing, the most likely direction for gold seems to be upward. It’s crucial to watch upcoming inflation and employment data, as they will greatly influence the timing of the Fed’s decisions. Create your live VT Markets account and start trading now.

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