Gold prices in Malaysia stayed mostly the same. The current price is 547.18 Malaysian Ringgits (MYR) per gram, slightly lower than 547.61 MYR yesterday. The price per tola is now 6,382.22 MYR, down from 6,387.18 MYR. FXStreet determines Malaysian Gold prices by converting international prices into local currency and measurements. These prices are just guidelines and may change locally.

The Value of Gold

Gold is widely recognized as a reliable store of wealth and a means of exchange. Besides being used in jewellery, it is viewed as a safe investment and protection against inflation and currency decline. Central banks hold the most Gold, purchasing 1,136 tonnes in 2022, worth about $70 billion. Countries like China, India, and Turkey are quickly building their Gold reserves. Gold’s value moves in opposition to the US Dollar and US Treasuries. When the Dollar weakens, Gold tends to rise, offering a way to diversify during economic uncertainty. Issues like geopolitical tensions or fears of a recession can raise prices, as can lower interest rates. On the other hand, high interest rates and a strong Dollar can keep prices stable. Gold’s steady price around 547 MYR per gram indicates that the market is settling before the next big change. This stable pricing provides a chance to prepare for future volatility, likely influenced by US monetary policy. We are closely monitoring any changes from the Federal Reserve.

Impact of US Economic Indicators

Last week’s US jobs report showed a big slowdown, raising speculation that the Fed will pause its rate hikes. We recall how the aggressive hikes in 2022 and 2023 limited gold prices, so any changes in policy could weaken the dollar. A weaker dollar typically boosts gold prices. Demand from central banks remains strong, continuing from the record purchases in 2022. The World Gold Council noted that central banks around the world added another 950 tonnes in 2024. This steady buying creates a strong foundation for prices and reduces risks. With this context, we expect more volatility in the coming weeks. Traders might think about buying call options to benefit from potential price increases due to a weaker dollar. Alternatively, using strategies like long straddles could be useful to take advantage of significant price movements in either direction. Market sentiment is also changing, illustrated by the VIX index rising to 22 this week. This increasing anxiety in the stock market might lead investors to seek safety. Gold, as a primary safe-haven asset, is well-positioned to gain from any downturn in riskier markets. Create your live VT Markets account and start trading now.

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