Gold Prices As A Safe Haven
Gold prices in Malaysia fell on Friday, according to FXStreet data. The price per gram was MYR 599.96, down from MYR 600.89 on Thursday.
Prices also decreased to MYR 6,997.95 per tola, from MYR 7,008.68 previously. The price for a Troy Ounce stood at MYR 18,660.88.
FXStreet calculates Malaysia’s Gold prices by converting international prices into local currency and updating them daily. Prices might vary slightly from local rates as they are primarily for reference.
Gold, apart from being used for jewellery, is seen as a safe-haven asset during turbulent economic times. It is utilised as a hedge against inflation, offering stability that doesn’t depend on a specific government.
Central banks are major purchasers of Gold to bolster their economies. They added 1,136 tonnes worth $70 billion to reserves in 2022, reaching a record high.
Gold often inversely correlates with the US Dollar and Treasuries. A weaker Dollar may cause Gold prices to rise, while a stronger Dollar can keep them lower.
Strategies For Market Volatility
Economic instability can drive up Gold prices given its status as a safe-haven asset. Lower interest rates typically increase Gold’s allure, while higher rates tend to decrease it.
We are seeing a minor dip in the gold price, but this is just daily noise against a much larger backdrop. The precious metal’s real value comes from its inverse relationship with the US Dollar, which has been strengthening on recent economic data. This dynamic is creating tension in the market that we need to watch carefully.
The key factor remains central bank policy, particularly from the US Federal Reserve. After the slightly higher-than-expected US inflation report for December 2025, which clocked in at 2.9%, the market is now pricing in a slower pace of interest rate cuts for this year. This expectation of higher rates for longer is providing a headwind for gold, as it is a non-yielding asset.
However, we cannot ignore the strong underlying support from physical demand. The latest World Gold Council data for the third quarter of 2025 showed that central banks, led by the People’s Bank of China, continued to add to their reserves at a near-record pace. This consistent buying provides a solid price floor and suggests any significant dips will likely be short-lived.
Given these conflicting signals, traders should consider strategies that benefit from volatility rather than a clear directional bet. The CBOE Gold Volatility Index (GVZ) has been creeping up from the lows we saw last fall, sitting around 16.5 this week. This suggests options are becoming more valuable as uncertainty about the Fed’s path and geopolitical stability grows.
We are advising a move away from simple long or short futures positions. Instead, consider buying call options to capture potential upside from any unexpected dovish pivot by the Fed, while using put options to hedge against a stronger dollar if upcoming US economic data remains robust. This balanced approach is better suited for a market being pulled in two different directions.
