Gold prices in the Philippines rose on Monday, according to FXStreet data. The price per gram increased to 7,995.10 PHP from 7,945.49 PHP on Friday. The price for gold per tola also went up to 93,252.03 PHP from 92,674.59 PHP. FXStreet calculates these prices by adjusting international gold prices in USD to local currency. These figures serve as a reference and may vary slightly from local prices. Gold is often seen as a safe-haven asset and is used to protect against inflation and currency decline.

Gold Reserves and Emerging Economies

Central banks hold the largest gold reserves, adding 1,136 tonnes in 2022, the highest annual purchase ever. Such purchases help support a country’s currency in tough times. Countries like China, India, and Turkey are rapidly boosting their gold reserves. Gold usually has an inverse relationship with the US Dollar and US Treasuries. When the Dollar weakens, gold prices often rise, while stock market gains tend to reduce gold’s attractiveness. Factors like geopolitical instability, interest rates, and Dollar strength significantly impact gold prices. As we enter December 2025, gold prices are climbing, highlighting its safe-haven status. Ongoing trade discussions and global growth concerns create uncertainty, prompting investors to seek safety in gold. This shift is a typical response during challenging periods.

Interest Rate Environment and Gold Strategy

Strong demand from central banks keeps gold prices stable. In 2022, we observed record purchases, and recent data from the World Gold Council for the third quarter of 2025 shows a net purchase of 337 tonnes globally. This continued buying from official entities indicates a strategic shift that supports gold’s value. The interest rate environment is becoming more favorable for gold, which does not earn interest. After raising rates in 2022-2023, the US Federal Reserve has held rates steady. Recent inflation data for October 2025 was softer than expected, increasing expectations for a rate cut in 2026. This situation is putting pressure on the US Dollar, benefiting gold. Given this outlook, we see potential in long-biased gold derivatives in the coming weeks. Buying call options on February 2026 gold futures could provide leveraged exposure to a price increase while limiting downside risk. This strategy takes advantage of possible price jumps due to forthcoming economic data. We are also looking at gold’s inverse relationship with risk assets, especially since equity markets showed weakness in November 2025. Traders heavily invested in stocks might use gold futures or options to hedge their portfolios. An uptick in implied volatility on gold options indicates the market anticipates larger price fluctuations ahead. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now