Gold prices in Malaysia rose on Tuesday. The price per gram went up to 523.75 Malaysian Ringgit (MYR) from MYR 519.49. The price per tola also increased to MYR 6,108.89 from MYR 6,059.25. Gold prices are set based on international rates, which change daily according to FXStreet. Local rates may differ slightly from these general figures.

Gold as a Safe Haven Asset

Gold has been a reliable store of value and a good hedge against inflation and currency decline. It is seen as a safe haven during times of uncertainty. Central banks, which are significant buyers of gold, include it in their reserves to boost economic credibility. In 2022, they added 1,136 tonnes, valued at about $70 billion, the highest recorded amount. Gold prices usually fall when the US Dollar and Treasury yields rise. Prices generally increase when the dollar weakens or during geopolitical instability that creates market uncertainty. Factors like global events and interest rates can impact gold’s value. Since gold is priced in USD, a strong dollar tends to lower gold prices, while a weaker dollar supports price increases. FXStreet’s data may involve risks and uncertainties. It’s important to conduct personal research before making any investment choices. This information should not be taken as a recommendation to buy or sell assets. Gold appears strong, as seen with the recent slight rise in local Malaysian prices. This rise shows growing concern in global markets, as investors seek safe-haven assets. The manufacturing slowdown noted in the August 2025 global PMI data is becoming a major worry.

Central Banks and Market Trends

It’s essential to remember that big players like central banks are still purchasing gold. According to the World Gold Council data from the second quarter of 2025, these banks added another 235 tonnes to their reserves, continuing the strong buying trend observed in 2022 and 2023. This ongoing demand provides a solid base for gold prices, making significant declines less likely. In the coming weeks, the US Dollar and Federal Reserve policy will be crucial. Following the Fed’s surprisingly cautious tone in September 2025, the market is anticipating a higher chance of an interest rate cut in early 2026 to support the slowing economy. A weaker dollar, which often results from expectations of lower interest rates, would be beneficial for gold. Given this situation, we might see increased price fluctuations, creating opportunities for options traders. Buying call options on gold futures or related ETFs could be a smart way to gain potential upside while managing risk. We can refer to historical periods when the Fed changed policy, like in 2019, when gold experienced significant increases following signs of relaxed monetary policy. We should also monitor the stock market, as gold typically rises when riskier assets decline. The S&P 500 has struggled to reach new highs over the past month, reflecting investor uncertainty amid rising fears of a recession. A sharp drop in stocks could lead to a rush for safety, further increasing gold’s appeal. Create your live VT Markets account and start trading now.

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