Gold prices in the Philippines are steady. According to FXStreet, the price is 8,232.77 Philippine Pesos (PHP) per gram on Wednesday, up slightly from 8,231.06 PHP on Tuesday. The price per tola is also stable at PHP 96,023.92, compared to PHP 96,005.45 the day before. FXStreet calculates local gold prices by using global rates adjusted for the USD/PHP exchange rate. These local prices are updated daily based on market conditions, but actual rates may differ slightly.

Gold’s Historic Role as a Store of Value

Gold has always been viewed as a safe place to keep value, especially during economic trouble. Central banks, including those in China, India, and Turkey, are the main buyers, with 1,136 tonnes purchased in 2022, valued at around $70 billion. Gold prices tend to move in the opposite direction of the US Dollar and US Treasuries. When the Dollar weakens or interest rates go down, gold prices usually rise. Similarly, fears of geopolitical issues or recessions can increase gold’s attractiveness. However, a strong Dollar often puts a cap on gold price increases. The current stable gold price, about 8,232 PHP per gram, is crucial for positioning ahead of the new year. This period may signal a buildup before potential volatility. Historically, a quiet year-end can lead to significant market movements as new investments come in January. It’s important to note that major central banks are suggesting potential interest rate cuts by 2026, a notable shift from the aggressive hikes seen in 2023. Lower interest rates typically make bonds less attractive, boosting interest in non-yielding assets like gold. This change hints that traders should expect upward pressure on gold prices.

US Dollar Influence and Central Bank Demand

This view is supported by the ongoing weakening of the US Dollar, which negatively affects gold prices. Lower US interest rates usually decrease the Dollar’s strength, making gold cheaper for holders of other currencies and increasing its demand. Monitoring the Dollar Index (DXY) for breaks in key support levels could help confirm bullish gold trades. Additionally, strong demand from central banks acts as a solid support for prices. After record purchases of over 1,000 tonnes in both 2022 and 2023, reports indicate that emerging market central banks are still diversifying their reserves. This ongoing institutional buying helps limit price drops and supports a long-term upward trend. For derivative traders, the current low volatility makes long-dated call options an appealing strategy. This approach allows traders to take advantage of potential price rises in the first quarter of 2026 while keeping risk limited to the premium paid. Buyers might consider out-of-the-money calls or bull call spreads to profit from expected price increases. Create your live VT Markets account and start trading now.

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