Gold prices in the Philippines rose on Friday, based on FXStreet data. Gold was priced at PHP 9,306.92 per gram, up from PHP 9,160.19 on Thursday.
Gold increased to PHP 108,554.30 per tola from PHP 106,842.70 a day earlier. Other listed prices were PHP 93,069.37 for 10 grams and PHP 289,476.60 per troy ounce.
How FXStreet Converts Global Gold Prices
FXStreet converts international gold prices into Philippine pesos using the USD/PHP rate and local measurement units. Prices are updated daily using market rates at the time of publication, and local rates may differ slightly.
Central banks are the largest holders of gold and use it as part of their reserves. They added 1,136 tonnes worth around $70 billion in 2022, according to the World Gold Council, the highest annual purchase since records began.
Gold often moves inversely to the US Dollar and US Treasuries, and can also move opposite to risk assets. Price drivers include geopolitical instability, recession fears, and interest rates, with many moves linked to shifts in the US Dollar because gold is priced in dollars (XAU/USD).
We are seeing gold prices rise, not just in Philippine Pesos but globally, which suggests this is more than a local currency fluctuation. This upward trend reflects a fundamental strengthening of the precious metal’s appeal. Derivative traders should view this as a signal that the underlying market dynamics are shifting in gold’s favor.
Key Market Forces Supporting Gold
Looking back at 2025, we saw central banks continue their significant gold acquisitions, building on the record purchases from previous years. For instance, central banks globally added over 1,037 tonnes in 2024, marking the second-highest year on record, a trend that persisted through last year. This consistent demand from official sources has created a strong price floor for the market.
Currently, the US Dollar Index (DXY) has been softening, dipping below 102 from its highs in late 2025, which is historically bullish for gold. This weakness is tied to recent Federal Reserve commentary hinting at a pause or potential pivot on interest rates due to slowing economic indicators. As a yield-less asset, gold becomes more attractive when interest rate expectations fall.
The persistent, though moderating, inflation we saw throughout 2025 remains a key concern for investors. With recent US inflation data for January 2026 coming in at a sticky 3.1%, market participants are increasingly using gold as a hedge against this erosion of purchasing power. This environment reinforces gold’s traditional role as a store of value.
Given these factors, traders should consider positioning for further upside in the coming weeks. Bullish strategies, such as buying call options on major gold ETFs or futures contracts, could be an effective way to capitalize on the expected upward momentum. The increasing market volatility also suggests that option premiums may rise, offering opportunities for those who can navigate it.
We also note the inverse correlation between gold and risk assets, which has become more pronounced. With equity markets showing signs of nervousness after a strong run in 2025, any potential downturn in stocks could trigger a flight to safety, further boosting gold prices. This makes gold a potentially valuable hedge within a broader derivatives portfolio.
