Insights 
VT 
Gold prices in Malaysia rose on Monday, according to FXStreet data. The price reached 578.98 Malaysian Ringgits (MYR) per gram, up from MYR 577.73 on Friday.
Gold per tola increased to MYR 6,753.10 from MYR 6,738.47 on Friday. FXStreet calculates prices by adapting international rates (USD/MYR) to the local currency and measurement units.
Gold as a Safe Haven Asset
Gold is considered a safe-haven asset during unstable times and is widely used as a hedge against inflation. Central banks hold large Gold reserves, having added 1,136 tonnes worth $70 billion in 2022, the highest annual purchase on record.
Gold prices often move inversely with the US Dollar and Treasuries, rising when the Dollar weakens. Market instability or lower interest rates can cause Gold prices to rise, while higher interest rates may suppress them.
All prices are for general reference and might slightly differ from local rates. Gold FAQ details were provided for informational purposes and do not serve as investment recommendations. All investment decisions should be made independently, considering associated risks.
Gold is showing strength today, building on a recent trend. This move is largely happening because of a softer US Dollar, which we are seeing fall against other major currencies. The Dollar Index (DXY) has recently slipped below 103, a significant drop from its highs earlier this year, making dollar-priced gold cheaper for foreign buyers.
Impact of Interest Rates and Central Bank Demand
A key factor driving this is the outlook on interest rates, which we see as a major catalyst. With the latest US inflation figures for September 2025 coming in at a milder-than-expected 2.8%, markets are now pricing in potential rate cuts from the Federal Reserve in the first quarter of 2026. As a non-yielding asset, gold becomes more attractive when interest rates are expected to fall.
We are also observing strong underlying support from central banks, which continue to be major buyers. Following the record-setting purchases we saw back in 2022, recent World Gold Council data shows central banks added over 300 tonnes to their reserves in the third quarter of 2025. This persistent demand, combined with simmering geopolitical tensions in Eastern Europe and the South China Sea, reinforces gold’s role as a safe-haven asset.
For traders using derivatives, this environment suggests considering long positions. Buying call options on gold futures or gold ETFs with expirations in early 2026, such as the January or February contracts, could be an effective way to capitalize on expected price increases. This strategy offers a defined risk while providing upside exposure to the developing trend.
Alternatively, traders might look at bull call spreads to lower the initial cost of entry. By buying a call option and simultaneously selling a higher-strike call option, the premium paid is reduced, though the potential profit is capped. This approach is suitable for those who anticipate a steady but moderate rise in gold prices over the next several weeks.
