Gold prices in the Philippines increased on Monday. According to FXStreet, the price rose to 8,914.57 Philippine Pesos (PHP) per gram, up from PHP 8,757.33 last Friday. The price per tola also went up, reaching PHP 103,977.80 from PHP 102,143.80. FXStreet updates its gold price figures daily, adapting them to local currencies and measurement units. Keep in mind that the prices are reference points and can slightly vary in local markets.

Role and Function of Gold

Gold is often seen as a safe investment and is widely used in jewellery. It serves as a reliable asset during economic downturns and is a hedge against inflation and currency loss. Central banks hold significant gold reserves; in 2022, they added 1,136 tonnes (or about $70 billion) to their stocks. Typically, gold prices rise when geopolitical tensions increase or during fears of a recession. Prices also tend to go up when interest rates drop and inversely correlate with the US Dollar; when the dollar weakens, gold prices usually increase. Today, gold reached a new high due to rising geopolitical tensions linked to US tariff threats against Europe. This has led investors to sell riskier assets in favor of safer options like gold. For traders dealing in derivatives, this indicates a time of high volatility and an upward trend for gold. We suggest taking bullish positions on gold in the coming weeks. Strategies like buying call options or long positions in futures contracts can take advantage of this rising trend. The current market fear is a strong motivator and will likely remain for some time.

Strategic Considerations for Traders

This increase is backed by strong demand observed over the past year. In 2025, central banks aggressively purchased gold, with the World Gold Council reporting over 800 tonnes in net purchases to diversify away from the US dollar. Additionally, there were consistent inflows into gold-backed ETFs in the last quarter of 2025, showing that both institutional and retail investors share this view. The weakening US Dollar is a big boost for gold. Today, the Euro and British Pound have strengthened against the dollar, making gold cheaper for those holding other currencies. Traders should watch the US Dollar Index (DXY) closely; further dollar weakness will likely push gold prices higher. The recent jump in prices has also increased implied volatility in the options market. Buying call options now seems like a smart move, allowing traders to benefit from price increases while limiting potential losses to the premium paid. In this uncertain environment, selling uncovered options poses a high risk. There’s a noticeable shift away from speculative assets, which strengthens the trend to safer investments. The sharp decline in meme coins like Dogecoin and Shiba Inu indicates that speculative investments are pulling back. This capital is looking for safety, and gold is the main beneficiary. As we look ahead to early 2026, it’s clear that the central banks’ major gold purchases in 2022 and 2023 signal a long-term trend. The current geopolitical issues are accelerating a rally built on solid foundations of reducing reliance on the US dollar and hedging against inflation. In the coming weeks, developments regarding US-Europe tariff issues will be crucial for short-term price movements. Create your live VT Markets account and start trading now.

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