Gold prices in Malaysia have dropped, according to FXStreet data. On Tuesday, the price was 560.10 Malaysian Ringgits (MYR) per gram, down from 562.94 MYR the day before. The price per tola also fell, now at 6,533.13 MYR, down from 6,566.06 MYR. FXStreet adjusts international gold prices to reflect local currency and measurement units, updating these daily according to the current market rates.

Gold As A Safe Haven Asset

Gold is considered a safe-haven asset, often used to protect against inflation and currency decline. Central banks own the most gold, with purchases reaching 1,136 tonnes in 2022, the highest in a single year. Gold tends to move inversely to the US Dollar and Treasuries. Price changes are affected by geopolitical issues, interest rates, and the strength of the US Dollar. The minor drop in gold prices today, now at 560.10 MYR per gram, could present a buying opportunity rather than a sign of weakness. This slight pullback occurs amid strong underlying support that has been building over the months. We view this as a brief pause before potential price increases. Market attention is turning to the US Federal Reserve’s upcoming policy decisions for early 2026. The latest US inflation data for November 2025 shows a lower Consumer Price Index of 2.5%, raising expectations that the rate hikes that started in 2022 may be finished. This could mean rate cuts are coming, which would reduce the opportunity cost of holding non-yielding assets like gold, making long positions in gold futures appealing.

Central Bank Purchases

Central bank demand is providing a strong price floor, helping to limit significant risks for traders. After record purchases in 2022, central banks have remained active buyers. Recent data from the World Gold Council indicates they added over 250 tonnes to their reserves in the third quarter of 2025. This ongoing accumulation, particularly from emerging market banks, suggests selling put options on gold could be a smart strategy to earn premium. The inverse relationship between gold and the US Dollar is crucial for traders. A weaker dollar, which we expect as bets on Fed rate cuts increase, makes gold cheaper for foreign buyers, generally pushing its price higher. Given the ongoing geopolitical tensions worldwide, buying call options is a cost-effective way to prepare for a possible price surge if risk aversion rises. While the overall outlook seems positive, volatility has been stable, with equities remaining strong. The CBOE Volatility Index, or VIX, is around 19, indicating caution but not panic in the market. This situation could be ideal for strategies that benefit from sharp price movements in either direction, such as a long straddle, especially with major economic announcements expected in the new year. Create your live VT Markets account and start trading now.

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