Gold prices in the Philippines rose on Wednesday, according to FXStreet data. A gram of gold jumped to 8,845.16 Philippine Pesos (PHP) from 8,759.73 PHP on Tuesday. The price for gold per tola increased to 103,168.20 PHP, up from 102,171.80 PHP the day before. FXStreet determines these prices by adjusting international gold rates using the USD/PHP exchange rate and local measurement units. These prices are updated daily, but local rates may vary slightly. Gold is traditionally seen as a safe investment, especially during uncertain times, as it acts as a buffer against inflation and currency decline.

Central Banks And Gold Prices

Central banks are the biggest gold holders, purchasing 1,136 tonnes in 2022, worth around $70 billion. Gold prices often move opposite to the US Dollar and US Treasuries. Events like geopolitical tensions can lead to higher gold prices. The strength of the US Dollar plays a crucial role in gold’s value, with a weaker Dollar typically driving prices up. Currently, gold is reacting as expected to the weakness of the US Dollar. The Dollar Index (DXY) has stayed around 101 for the past month, indicating this weakness, which supports rising gold prices. This situation suggests that traders should focus on gold’s potential strength. Market expectations fully account for Federal Reserve rate cuts by the second quarter, especially after the inflation reports for 2025. December’s inflation data from last year showed the Consumer Price Index at 2.8%, reinforcing belief that the Fed can loosen its policies. This makes non-yielding assets like gold more attractive. We cannot ignore the steady demand from central banks, which helps stabilize gold prices. Last year, central banks worldwide added over 1,040 tonnes to their reserves through 2025, making it the third-highest year for net purchases on record. This buying trend shows no sign of slowing down, particularly from emerging market economies.

Geopolitical Tensions And Maritime Trade Routes

Ongoing geopolitical tensions and recent disruptions to maritime trade routes are further strengthening gold’s position as a top safe-haven asset. These uncertainties drive investments into gold as protection against global instability. We expect this environment will keep any significant sell-offs at bay for now. For derivative traders, this means that buying call options or using bull call spreads can be effective strategies for gaining exposure to potential price increases. With implied volatility rising, it’s important to manage entry costs, making pullbacks good opportunities to buy. We should look for chances to build long positions in the coming weeks. Create your live VT Markets account and start trading now.

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