On Friday, gold prices in the Philippines went up, according to FXStreet data. The price per gram increased to PHP 8,147.66 from PHP 8,086.72 the day before. For tola, the price rose to PHP 95,033.70 from PHP 94,321.95. FXStreet modifies international gold prices (USD/PHP) to the local currency, updating them daily based on market rates. Local prices may slightly differ from the figures mentioned.

Gold’s Historical Value

Gold has always been valued for its role as a store of value and a medium of exchange. It serves as a safe investment during uncertain times and is a safeguard against inflation and currency loss. Central banks own the most gold, buying 1,136 tonnes worth about $70 billion in 2022, the highest annual purchase ever. Countries like China, India, and Turkey are quickly boosting their reserves. Gold’s price often moves in the opposite direction of the US Dollar and Treasury yields. When the Dollar loses value, gold usually gains value. It also reacts inversely to risk assets; when stock markets are strong, gold prices tend to fall. Geopolitical tensions and recession fears can drive up gold prices. Typically, gold prices rise when interest rates are low, while a strong US Dollar tends to keep its price in check.

Global Trends in Gold Pricing

The recent increase in gold prices, now over PHP 8,147 per gram, reflects a larger global trend. This isn’t only a local currency issue—it relates to gold’s strength worldwide. We see this as evidence that gold is reclaiming its role as a safe investment amid market uncertainty. The US Federal Reserve’s recent statements from their September 2025 meeting suggested a pause on interest rate hikes, which is generally good for gold, a non-yielding asset. With US inflation still at 3.1% for September 2025, investors are seeking ways to protect their money. In this environment, gold becomes more attractive as a safeguard against currency loss. Gold’s inverse relationship with the US Dollar is important for traders. The Dollar Index (DXY) has weakened, dipping below 104 recently as markets expect a softer monetary policy from the Fed. A weaker dollar makes gold cheaper for people using other currencies, potentially increasing demand. Additionally, central banks continue to buy gold. According to the World Gold Council, over 800 tonnes were added to global reserves through the third quarter of 2025. There have also been significant investments in gold-backed ETFs this month, showing growing investor confidence. This institutional demand helps support gold prices, continuing the trend from record purchases in 2022. In the coming weeks, we believe that buying call options on gold futures or ETFs can offer a good risk-reward opportunity. Traders might consider near-dated calls to take advantage of short-term price changes or use bull call spreads to reduce upfront costs. Selling cash-secured puts is another option for those optimistic about gold and willing to buy the asset at a lower price. Create your live VT Markets account and start trading now.

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