Gold prices in the Philippines went up on Monday, according to FXStreet data. The price per gram increased to 9,613.17 Philippine Pesos (PHP), up from 9,443.63 PHP on Friday. The cost for a tola also rose to PHP 112,126.10 from PHP 110,148.70. FXStreet determines gold prices in the Philippines by adjusting international prices (USD/PHP) to the local units. Prices are updated daily based on the current market rates.

Gold as a Safe Haven Asset

Gold is seen as a reliable asset during tough economic times. It acts as a safe haven and protects against inflation because it’s not tied to any government. Central banks hold gold mainly to support their currencies when things get rocky. In 2022, central banks bought a record 1,136 tonnes of gold, worth around $70 billion, with many emerging economies growing their reserves quickly. Gold prices usually move oppositely to the US Dollar and Treasuries. When the Dollar weakens, gold prices often rise, making gold appealing during uncertain times. Economic instability or recessions can drive gold prices higher due to its safe-haven reputation. Gold’s value often shifts based on the strength of the US Dollar. The recent rise in gold prices shows its increasing popularity as a safe-haven asset amid uncertainty. We’re seeing higher demand due to renewed geopolitical tensions that cause volatility in stock markets. Derivative traders should recognize this as a sign that the bullish sentiment around gold is getting stronger. This surge is backed by strong institutional buying, a trend we’ve noticed increasing throughout 2025. New data from the fourth quarter of 2025 shows that central bank purchases surpassed 1,150 tonnes, setting a new record above the previous high from 2022. This steady demand from major global players creates a solid price floor, suggesting that any dips will be good buying opportunities.

Impact of the US Federal Reserve

We also need to think about the actions of the US Federal Reserve, as gold prices tend to move in the opposite direction of the dollar. After last week’s US inflation report came in slightly above expectations at 3.1%, the dollar weakened. This raises the likelihood that the Fed may start reducing interest rates by the second quarter, which is positive for gold and other non-yielding assets. In this environment, traders should consider strategies to take advantage of potential price increases in the coming weeks. Buying call options or creating bull call spreads on gold futures can be effective ways to benefit from rising prices while clearly managing the maximum potential loss. However, managing risk is crucial, as markets can be unpredictable. We witnessed a similar trend in late 2024 when gold reached new highs before a brief and sharp correction. Therefore, traders using futures contracts should employ disciplined stop-loss orders to protect their capital from sudden downturns. Create your live VT Markets account and start trading now.

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