Gold prices in Malaysia went up on Tuesday. The price per gram rose to 565.57 Malaysian Ringgits from 558.34 MYR the day before. The price for a tola also increased, reaching 6,596.72 MYR from 6,512.40 MYR. FXStreet updates international prices to the Malaysian currency daily.

Gold As A Reliable Asset

Gold has been valued for centuries as a safe investment and medium of exchange. Today, it is seen as a secure asset during uncertain times, helping to protect against inflation and currency loss. Central banks hold large reserves of gold to strengthen economies in challenging periods. In 2022, they bought 1,136 tonnes of gold—the highest annual purchase ever recorded. Gold usually moves inversely to the US Dollar and US Treasuries. When the US Dollar weakens, gold prices generally rise. Conversely, a strong stock market can lead to lower gold prices. Several factors influence gold’s price, including geopolitical tensions and interest rates. Gold prices tend to increase when interest rates are low but are highly affected by the performance of the US Dollar since gold is priced in dollars. The recent rise in gold prices to 565.57 MYR per gram indicates strong upward momentum. For derivative traders, this suggests that buying call options on gold futures or related ETFs may yield short-term gains. There has been an uptick in open interest for contracts expiring in the next two months, signaling growing optimism among traders.

Gold And Inflation Dynamics

This price increase aligns with gold’s traditional role as a hedge against inflation. The latest global CPI figures for September 2025 show ongoing increases in consumer prices. We saw a similar situation during the high-inflation years of 2021-2022, leading to a prolonged rise in precious metals. This historical trend indicates that concerns about currency devaluation are driving more investments into tangible assets. The negative relationship between gold and risk assets is also important, as the S&P 500 has fallen by 4% over the past month. Ongoing geopolitical issues enhance gold’s status as a safe haven. We suggest that traders use gold derivatives to protect against possible declines in equity markets. Additionally, the U.S. Dollar Index recently dropped from 105 to 103.5, providing a boost for dollar-priced assets. Since gold is priced in USD, any further weakness in the Dollar could lead to greater gains for gold. Watching the 103 support level on the Dollar Index will be crucial for predicting gold’s next move. While the outlook is positive, the implied volatility of gold options has risen, making them pricier. Traders might consider strategies like bull call spreads to reduce onboarding costs while still benefiting from potential price increases. This strategy allows for participation in the rally while managing risk in case of a sudden market downturn. Create your live VT Markets account and start trading now.

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