Gold prices in the Philippines increased on Wednesday, according to FXStreet. The price per gram of gold rose to 9,921.75 Philippine Pesos, up from 9,791.70 PHP on Tuesday. Currently, gold costs 115,725.40 PHP per tola, an increase from 114,208.50 PHP the day before. The price for a troy ounce is now 308,596.80 PHP.

How Gold Prices Are Determined

FXStreet calculates local gold prices using the international gold price and the USD/PHP exchange rate. These prices are updated daily, but local rates may vary slightly. Gold has always been valued as a store of value and a medium of exchange. It is considered a safe asset, especially during market turmoil, and it helps protect against inflation. Central banks are major gold buyers. They added 1,136 tonnes to their reserves in 2022, worth about $70 billion. This marks the highest annual purchase ever recorded. Gold often moves in the opposite direction of the US Dollar and US Treasuries. It typically increases when the Dollar weakens and interest rates are low. Conversely, a stronger Dollar or higher interest rates can lower its price.

Gold’s Recent Market Performance

The recent increase in gold to PHP 9,921.75 shows rising market anxiety. This change comes as we await the Federal Reserve’s interest rate decision next week. The market is anticipating considerable uncertainty, leading to opportunities for derivative strategies. Recent inflation data indicates that the 2025 US Consumer Price Index ended at a steady 3.4%. This persistent inflation keeps gold appealing, as it traditionally serves as a hedge against declining currency values. Traders are positioning themselves for this by considering longer-dated call options. Institutional support remains strong. Central banks continued buying aggressively throughout 2025, adding over 1,080 tonnes to their reserves, according to the World Gold Council’s final report. This ongoing demand sets a solid price floor, making short positions risky. The US Dollar Index (DXY) is rising, currently around 104.50, which usually challenges gold prices. Nevertheless, the upcoming Fed meeting has led to an increase in implied volatility for gold options, rising over 18%, significantly above last quarter’s average. This indicates traders expect a sharp price movement following the announcement. Given the high volatility, buying options to manage risk appears wise. Bullish traders might consider call spreads to reduce entry costs, while those anticipating a downturn could look at put options. A straddle, purchasing both a call and a put, could be an effective way to trade the expected price swings, although it may be more expensive. Create your live VT Markets account and start trading now.

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