Gold prices in the Philippines went up on Tuesday, according to FXStreet data. The price reached 8,493.44 Philippine Pesos (PHP) per gram, up from PHP 8,451.43 on Monday. The cost for a tola increased to PHP 99,063.82, compared to PHP 98,575.80 the day before. For 10 grams, the price is PHP 84,932.68, and a troy ounce costs PHP 264,173.00.

Gold Pricing Mechanism

FXStreet sets these prices by converting international values (USD/PHP) to the local currency and updates them daily. These numbers are for reference, and actual local rates may vary slightly. Gold is often viewed as a safe investment during uncertain times, serving as a store of value and protection against inflation. Central banks hold the most gold, diversifying their reserves to strengthen their economies. In 2022, central banks purchased 1,136 tonnes, the highest amount ever recorded in one year. Gold usually has an inverse relationship with the US Dollar and US Treasuries. When the Dollar weakens, gold prices often rise, making it a safe-haven asset. Gold’s price is influenced by geopolitical events, interest rates, and the US Dollar’s strength, commonly quoted as XAU/USD. The recent increase in gold prices is part of a broader trend caused by a weakening US Dollar. The US Dollar Index recently fell below 101.5, marking a significant drop from its highs in late 2025. This makes gold more affordable for those holding other currencies, providing strong support for the precious metal.

Market Trends and Strategic Approaches

We are also noticing strong demand from institutional buyers, which helps maintain stable prices. Recent data from the World Gold Council showed that central banks, especially in emerging markets, continued to buy gold in the last quarter of 2025, continuing a multi-year trend. This consistent purchasing indicates a long-term strategy to move away from the dollar. In the coming weeks, market expectations around interest rates will play a crucial role. After last week’s weaker jobs report, the market now sees a 70% chance of a Federal Reserve rate cut by mid-year, contrasting sharply with the hawkish outlook in most of 2025. As a non-yielding asset, gold becomes more appealing when interest rates are expected to drop. For derivative traders, this environment makes long positions through call options on gold futures appealing. Buying March and April contracts allows traders to benefit from potential price increases while managing risk in a volatile market. The increase in implied volatility signals growing uncertainty about the global economy. Gold’s inverse correlation with risk assets also allows it to serve as a hedge for portfolios. With stock markets appearing overextended after their late 2025 rally, using bull call spreads on gold could be a smart move. This strategy helps protect against a possible stock market correction. We’ve seen similar conditions arise in the second half of 2024. Slowing economic data shifted Fed expectations, leading to a rally in gold. This shows how quickly market sentiment can favor safe-haven assets. The current market suggests a possibility of repeating that scenario. Create your live VT Markets account and start trading now.

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