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Gold prices in the Philippines increased on Monday, as reported by FXStreet. The price per gram rose to 7,591.94 Philippine Pesos (PHP) from PHP 7,521.25. Gold price per tola also saw an increase to PHP 88,550.84 from PHP 87,726.40. Prices are updated daily and may vary slightly from local rates.
Gold serves as a valuable investment, often considered a safe-haven asset during turbulent times and as a hedge against inflation. Central banks, the largest holders of Gold, diversify their reserves by increasing their Gold stocks. In 2022, central banks added 1,136 tonnes of Gold, valued at approximately $70 billion.
Gold Price Influencers
Gold often moves inversely with the US Dollar and US Treasuries, both significant safe-haven assets. When the Dollar decreases, Gold tends to increase as a result. Gold price also responds to geopolitical instability and economic factors. It rises with lower interest rates but struggles when costs are higher. Changes in the US Dollar affect Gold’s pricing, with a stronger Dollar controlling prices and a weaker Dollar allowing them to rise.
The recent rise in gold prices reflects its role as a safe-haven asset during turbulent times. We’re seeing signs of a slowing global economy, with the latest US non-farm payroll report for September 2025 showing job growth missing expectations at just 150,000. This is prompting a flight to safety away from riskier assets like stocks.
Gold’s strength is inversely tied to the US Dollar, which has softened recently. Markets are now pricing in future interest rate cuts, with the CME FedWatch Tool showing a 65% probability of the Federal Reserve cutting rates by March 2026. A weaker dollar makes gold cheaper for foreign buyers and increases its appeal.
Central Bank Buying and Inflation Hedge
We must also consider the persistent buying from central banks, which provides a strong price floor. Following the record purchases we saw back in 2022, preliminary data for the third quarter of 2025 indicates that central banks, particularly in emerging markets, added another 250 tonnes to reserves. This trend shows a strategic shift away from dollar-denominated assets.
Given this backdrop, we anticipate increased volatility in the coming weeks, as the CBOE Gold Volatility Index has already climbed to 18. For derivative traders, this environment could make long-dated call options an attractive strategy to capture potential upside while managing risk. We’re seeing this sentiment reflected in recent market activity, with inflows into gold-backed ETFs totaling over $2 billion in the last five weeks.
The precious metal is also being viewed as a hedge against stubborn inflation, which remains a concern. Even though September 2025’s core CPI eased slightly to 3.1%, it is still well above the central bank’s target. As gold is a non-yielding asset, its appeal grows when real yields, which are interest rates minus inflation, are expected to fall.
