Gold prices in the Philippines rose on Monday, according to FXStreet. The price per gram jumped to 7,591.94 Philippine Pesos (PHP) from PHP 7,521.25. Additionally, the price per tola increased to PHP 88,550.84 from PHP 87,726.40. Prices change daily and may differ slightly from local rates. Gold is a popular investment, often viewed as a safe haven during uncertain times and a protection against inflation. Central banks, which are the biggest holders of gold, often increase their gold reserves to diversify. In 2022, central banks added 1,136 tonnes of gold, worth around $70 billion.

Gold Price Influencers

Gold prices often move in the opposite direction of the US Dollar and US Treasuries, both considered safe assets. When the Dollar falls, Gold prices typically rise. Gold also reacts to global political unrest and economic conditions. Prices go up when interest rates are low but struggle when rates are high. A stronger Dollar usually puts downward pressure on gold prices, while a weaker Dollar allows them to rise. The recent increase in gold prices shows its role as a safe haven asset. Signs point to a slowing global economy, with the latest US non-farm payroll report for September 2025 showing only 150,000 jobs created, less than expected. This situation is causing investors to seek safety away from riskier assets like stocks. Gold’s strength is closely linked to the US Dollar, which has recently weakened. Markets now expect future interest rate cuts, with the CME FedWatch Tool indicating a 65% chance of the Federal Reserve reducing rates by March 2026. A weaker Dollar makes gold less expensive for foreign buyers, boosting its appeal.

Central Bank Buying and Inflation Hedge

Ongoing purchases by central banks also help support gold prices. In addition to record purchases in 2022, preliminary data for the third quarter of 2025 shows that central banks, especially in emerging markets, added another 250 tonnes to their reserves. This indicates a strategic move away from dollar-based assets. Considering these factors, we expect increased volatility in the coming weeks, as the CBOE Gold Volatility Index has already risen to 18. For traders in derivatives, this environment could make long-dated call options a smart strategy to capture potential gains while managing risk. Recent market activity shows this sentiment, with over $2 billion flowing into gold-backed ETFs in the last five weeks. Gold is also viewed as a hedge against persistent inflation concerns. Although the core CPI for September 2025 fell slightly to 3.1%, it remains well above the central bank’s target. Since gold does not yield interest, it becomes more attractive when real yields—interest rates adjusted for inflation—are expected to decline. Create your live VT Markets account and start trading now.

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