Insights 
VT 
Gold prices in Malaysia declined on Tuesday, with the price per gram at 535.97 MYR, down from 537.51 MYR on Monday. The price per tola also decreased to 6,250.97 MYR from 6,269.39 MYR the previous day.
FXStreet updates Gold prices in Malaysia daily, adjusting international prices to the local rates and units. These rates are a reference point and may differ slightly from actual market prices.
Gold As A Hedge Against Inflation
Gold remains a favoured asset for its historical value as a store and its role as a hedge against inflation and currency depreciation. Central banks, including those in China, India, and Turkey, bolster their reserves with Gold, with global purchases reaching a record high in 2022.
Gold often moves inversely to the US Dollar and Treasuries, rising when the Dollar weakens, as seen during geopolitical tensions or recession fears. The US Dollar’s strength significantly impacts Gold pricing due to its pricing in dollars (XAU/USD). A strong Dollar typically pushes Gold prices down, while a weaker Dollar can cause them to rise.
Current Gold prices are 535.97 MYR per gram, 5,359.11 MYR per 10 grams, 6,250.97 MYR per tola, and 16,670.24 MYR per troy ounce.
While we note the slight price dip in Malaysian Ringgit, this appears to be minor local fluctuation. The bigger picture for gold, now trading around $2,350 per ounce, is shaped by global forces, not daily noise. This short-term softness could present a tactical entry point for traders positioning for the coming months.
Impact Of Central Bank Buying
We are seeing US inflation data continue to cool, with the latest core CPI figures from September 2025 coming in at 2.8%. This reinforces market expectations, with Fed fund futures now pricing in a greater than 70% chance of a rate cut in the first half of 2026. Lower interest rates decrease the opportunity cost of holding non-yielding gold, a factor that typically supports upward price momentum.
The trend of strong central bank buying that we saw accelerate back in 2022 and 2023 has not subsided. Looking back, the 1,037 tonnes added in 2023 set a precedent, and reports from the first three quarters of 2025 indicate this strategic reserve diversification is continuing. This consistent demand provides a strong floor for gold prices and limits the potential for significant downturns.
Geopolitical frictions and slowing global growth continue to create an environment of uncertainty. With recent global manufacturing PMI data hovering just below the 50-point mark for several months, fears of a broader economic slowdown persist. In such times, gold’s role as a safe-haven asset becomes more prominent, attracting capital that is seeking to hedge against market volatility.
Given these factors, derivative traders should view any price weakness in the coming weeks as a potential opportunity. Establishing long positions through call options could offer a favorable risk-reward profile, targeting a move higher into early 2026 as rate cut expectations solidify. This strategy allows participation in the potential upside while defining the maximum risk on the position.
