Gold prices in Malaysia rose on Friday. According to FXStreet, the price per gram increased to 570.47 Malaysian Ringgits (MYR), up from 563.31 MYR the day before. The cost per tola also climbed to 6,653.95 MYR from 6,570.37 MYR. FXStreet determines the gold prices in Malaysia using global prices and the USD/MYR exchange rate, updating them daily. Local prices may differ slightly from reference prices due to market fluctuations.

Gold As A Safe Haven Investment

Gold has been a trusted store of value and means of exchange, not just for making jewellery. It is viewed as a safe place to invest during tough economic times and a way to protect against inflation and currency decline. Central banks keep the most gold, buying 1,136 tonnes in 2022, which was the biggest amount ever recorded in a single year. Countries like China, India, and Turkey are quickly increasing their gold holdings. Gold’s price typically rises when the US Dollar weakens. It tends to fall when stocks are performing well and increases when the market is down. Several factors determine gold prices, including geopolitical issues, interest rates, and the strength of the US Dollar. The recent jump in gold to MYR 570.47 per gram aligns with a broader global trend. This is part of an ongoing rise, as international prices have recently pushed above $2,050 per ounce. We see this as a continuation of the strength observed in the last quarter of 2025. Central banks remain a strong influence, especially since they purchased a record 1,136 tonnes in 2022. This trend continued into 2025, with World Gold Council data showing over 800 tonnes bought in the first three quarters of last year. This steady buying supports the market significantly.

Gold Prices And Market Forces

Our current focus is on the Federal Reserve’s policies. Lower interest rates usually help gold prices rise. After a long period of high rates to fight persistent inflation in 2024, the market now expects at least two rate cuts by the third quarter. We believe these expectations are driving the gold price in the upcoming weeks. Geopolitical tensions also enhance gold’s appeal as a safe investment. The ongoing instability we’ve been monitoring has led many investors to turn to gold during turbulent times, creating a situation where prices might rise unexpectedly. For derivatives traders, this environment makes long positions through call options attractive. Buying calls or using bull call spreads can capture potential gains from anticipated interest rate changes. Implied volatility may increase as the next Fed meeting approaches, so early positioning is crucial. We are closely observing price trends from the second half of 2024, when gold broke past previous trading levels. The new support level around $2,300 per ounce now acts as a key psychological floor for the market. A significant breakthrough above the 2025 highs would indicate a new upward movement. Create your live VT Markets account and start trading now.

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