Insights 
VT 
Gold prices in Malaysia increased on Tuesday. The price per gram rose to 565.57 Malaysian Ringgits from 558.34 MYR the previous day.
The price per tola also increased, reaching 6,596.72 MYR from 6,512.40 MYR. FXStreet adapts international prices to Malaysian currency, with updates daily.
Gold As A Reliable Asset
Gold has been important throughout history as a store of value and medium of exchange. It is currently considered a reliable asset in uncertain times and serves as a hedge against inflation and currency depreciation.
Central banks hold the largest Gold reserves, diversifying to support economies in tough times. In 2022, they added 1,136 tonnes of Gold, the largest annual purchase recorded.
Gold has an inverse relationship with the US Dollar and US Treasuries. A weaker US Dollar tends to push Gold prices up, while a rally in the stock market usually weakens them.
Gold’s price moves due to factors like geopolitical instability and interest rates. It tends to rise with lower interest rates but depends significantly on the US Dollar’s performance, as it is priced in dollars.
Gold’s recent price increase to 565.57 MYR per gram signals strengthening upward momentum. For derivative traders, this suggests that buying call options on gold futures or related ETFs could capture near-term gains. We are seeing increased open interest in contracts expiring over the next two months, indicating growing bullish sentiment among market participants.
Gold And Inflation Dynamics
This move aligns with gold’s traditional role as a hedge against inflation, as the latest global CPI figures for September 2025 showed a persistent elevation in consumer prices. We saw a similar dynamic during the high-inflation period of 2021-2022, which ultimately led to a sustained rally in precious metals. This historical precedent suggests that fears over currency devaluation are once again pushing capital into hard assets.
The inverse correlation between gold and risk assets is also a key factor, as the S&P 500 has experienced a 4% downturn over the past month. Geopolitical instability continues to simmer, further enhancing gold’s appeal as a safe-haven asset. We believe traders should consider using gold derivatives to hedge against potential further declines in equity markets.
Furthermore, the U.S. Dollar Index has recently fallen from 105 to 103.5, providing a direct tailwind for assets priced in dollars. As gold is priced in USD, any further weakness in the currency will likely amplify gains for the precious metal. We recommend watching the 103 support level on the dollar index as a key indicator for gold’s next move.
While the outlook is bullish, implied volatility in gold options has increased, making them more expensive. Traders could therefore consider strategies like bull call spreads to lower the cost of entry while still profiting from a potential rise in prices. This approach allows participation in the rally but also defines risk in case of a sudden market reversal.
