Gold prices in Malaysia rose on Friday, according to FXStreet data. The price reached 592.49 Malaysian Ringgits per gram, up from 588.00 MYR on Thursday. The price per tola increased from MYR 6,858.26 to MYR 6,910.35. A troy ounce of gold is now worth 18,429.18 MYR.

How Malaysian Gold Prices Are Calculated

FXStreet calculates gold prices in Malaysia by aligning them with international prices in local currency. These prices are a reference point and may vary slightly from local rates. Gold has always been considered a safe-haven asset. People use it to protect against inflation and a declining currency. Central banks are the biggest buyers, boosting their gold reserves to enhance economic trust. In 2022, central banks bought 1,136 tonnes of gold, worth around $70 billion. This was the largest annual purchase recorded. Gold typically moves opposite to the US Dollar and US Treasuries. When the Dollar weakens, gold prices usually increase. Prices often drop during stock market rallies and rise during downturns. Factors affecting gold prices include geopolitical instability and changes in interest rates. The strength or weakness of the US Dollar has a big impact on gold’s value, as it is priced in dollars.

Recent Market Movements

The increase in gold over 592 MYR per gram is significant. It shows gold’s traditional role as a safe haven during economic uncertainty. The upcoming weeks look unstable, and gold is responding as expected. Last quarter, the Federal Reserve paused its rate cuts after inflation turned out to be higher than expected, with September’s Consumer Price Index (CPI) at 3.1%. In this environment of uncertain interest rates, gold becomes more appealing as a safe asset. The market now predicts a lower chance of further cuts this year, adding to the uncertainty. We should also note the strong ongoing demand from central banks since the record purchases in 2022. Reports from the World Gold Council in 2024 confirmed that emerging economies continue to build their reserves. This creates a solid support level for gold prices, reducing significant downside risk for traders. Gold’s relationship with the US Dollar is important. With the recent drop in the DXY index below 104, gold has room to rise. Additionally, with increased volatility in equity markets—the VIX has been around 19 this month—traders are looking for protection against potential stock market declines, which is helping gold. In the coming weeks, buying call options on gold futures (GC) provides a way to take advantage of potential price increases with defined risk. If you expect steady growth rather than a sharp rise, consider bull call spreads to lower the upfront costs. This strategy balances potential profit with entry costs in a volatile market. We should closely monitor upcoming Federal Reserve statements and the next inflation report for further direction. Any indication of a more accommodating stance could push gold prices higher. Also, keep an eye on geopolitical news, as any increase in global trade tensions could lead investors back to gold. Create your live VT Markets account and start trading now.

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