Gold prices in Malaysia held steady on Tuesday at 555.63 Malaysian Ringgits (MYR) per gram, up slightly from 555.09 MYR on Monday. The price per tola also saw a small increase, reaching MYR 6,480.79 compared to MYR 6,474.45 the day before. FXStreet monitors gold prices in Malaysia by converting international rates (USD/MYR) to the local currency and units. They update the rates daily based on market conditions. Here are the current gold prices: – **1 gram:** MYR 555.63 – **10 grams:** MYR 5,556.23 – **Tola:** MYR 6,480.79 – **Troy ounce:** MYR 17,282.36

Safe Haven Asset

Gold is seen as a safe-haven asset, especially during economic uncertainty. It protects against inflation and currency decline because it isn’t tied to any government or issuer. Central banks keep large amounts of gold to back their currencies. In 2022, they purchased a record 1,136 tonnes, with countries like China, India, and Turkey notably increasing their reserves. Gold often moves in the opposite direction of the US Dollar and US Treasuries, providing diversification during economic stress. Factors like interest rates and geopolitical events also affect gold prices, while a strong Dollar can limit price increases. Currently, the gold price appears stable, suggesting a period of consolidation before a possible rise. This calmness stands in contrast to the increasing uncertainty in financial markets. Traders might see this as a chance to prepare for future volatility.

Central Bank Buying and Market Impact

Buying from central banks continues to support gold prices, a trend that has intensified since the record purchases in 2022. Recent data from the World Gold Council shows that central banks, particularly in emerging economies, added over 800 tonnes to their reserves in the first three quarters of 2025. This ongoing demand reduces the risk for the precious metal. In the coming weeks, gold’s price will mainly depend on changes in U.S. monetary policy. As inflation shows signs of easing throughout 2025, the market expects the Federal Reserve may cut interest rates in the first half of 2026. The CME FedWatch tool currently shows a 70% chance of a rate cut by March, which is putting pressure on the U.S. Dollar. For derivative traders, this outlook suggests that buying call options on gold futures or gold-backed ETFs could be a smart move. Contracts expiring in February or March 2026 might capture potential price increases as rate cut expectations strengthen, allowing for significant profit potential while limiting risk to the premium paid. We should also note the negative correlation with riskier assets. In the fourth quarter of 2025, the S&P 500 has struggled, reflecting fears of an economic slowdown. This uncertainty in stocks is directing funds toward safe-haven assets, which benefits gold. Thus, using derivatives to take a bullish stance on gold seems sensible given the macroeconomic conditions. A weaker U.S. Dollar, ongoing central bank demand, and a shaky stock market all support this view. It’s important to watch upcoming U.S. jobs and inflation data closely, as any signs of weakness in the economy could boost gold prices. Create your live VT Markets account and start trading now.

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