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Gold prices in Malaysia fell on Monday, according to FXStreet data. The price decreased to 550.62 MYR per gram from 557.16 MYR on Friday.
The cost per tola also decreased, dropping to 6,422.33 MYR from 6,498.65 MYR. Gold is available in various units, including 550.62 MYR per gram and 17,126.19 MYR per Troy Ounce.
Updates From FXStreet
FXStreet updates gold prices daily based on international USD/MYR conversions to local currency. While these prices are used as a reference, local rates may vary.
Gold is perceived as a safe-haven asset as it acts as a hedge against inflation and currency depreciation. Central banks remain the largest holders of gold, increasing reserves by 1,136 tonnes in 2022.
Gold tends to correlate inversely with the US Dollar and US Treasuries. In times of Dollar depreciation, gold prices often increase, acting as a preferred asset.
Producers monitor changes due to geopolitical instability, economic recessions, and US Dollar movements. While reducing interest rates tends to promote gold investment, stronger Dollar values can curb prices.
Although we saw gold prices dip slightly today, this could present a strategic opportunity rather than a sign of a new downtrend. The fundamental drivers for gold remain strong, especially when considering its role as a hedge against currency depreciation and economic turmoil. This short-term weakness is occurring while the US Dollar Index (DXY) continues to trade firmly above the 105 level, a multi-year high we’ve been watching.
Central Bank Demand
The market’s attention is now firmly on the future of interest rates, particularly from the US Federal Reserve. After the aggressive rate-hiking cycle that we experienced through 2023 and 2024, persistent signs of a slowing global economy are fueling speculation that rate cuts could be on the horizon for mid-2026. As a non-yielding asset, any signal of lower rates would make gold significantly more attractive to hold.
Central bank demand continues to provide a solid floor for prices. Looking back, we know central banks bought a record 1,082 tonnes in 2022, and data from the World Gold Council confirmed this voracious appetite continued through 2023 and 2024 with emerging economies leading the purchases. This consistent buying from official sources helps absorb supply and supports the price during periods of weak investor sentiment.
Gold’s status as a safe-haven asset is highly relevant in the current environment. We are facing persistent geopolitical tensions and recent manufacturing PMI data from both Europe and China has pointed towards economic contraction, raising fears of a global recession. In such turbulent times, capital naturally flows toward assets that are seen as stores of value.
For derivative traders, this backdrop suggests viewing the current price dip as a chance to position for potential upside in the coming weeks. Bullish strategies, such as buying call options or establishing long futures contracts, could benefit if expectations for future rate cuts solidify. We should closely monitor upcoming US inflation and employment data, as any weakness there would likely accelerate a dovish pivot from the Fed and weaken the dollar.
