Insights 
VT 
Gold prices in Malaysia increased on Friday, according to FXStreet data. The cost for gold reached 592.49 Malaysian Ringgits per gram, rising from 588.00 MYR on Thursday.
The gold price per tola increased from MYR 6,858.26 to MYR 6,910.35. A troy ounce of gold is valued at 18,429.18 MYR.
Calculating Malaysian Gold Prices
FXStreet calculates Malaysia’s gold prices by aligning international prices with the local currency. These prices serve as a reference point and may differ slightly from local rates.
Gold has historically served as a safe-haven asset and is utilised as a hedge against inflation and currency depreciation. Central banks are the largest buyers, enhancing their reserves with gold to bolster economic trust.
Central banks purchased 1,136 tonnes of gold in 2022, translating to about $70 billion. This marks the highest yearly acquisition recorded.
Gold has an inverse correlation with the US Dollar and US Treasuries. A depreciating Dollar typically benefits gold prices, which often decline during stock market rallies but rise during sell-offs.
Factors impacting gold prices include geopolitical instability and interest rate changes. The US Dollar’s strength or weakness significantly influences gold’s valuation, as it is priced in dollars.
Recent Market Movements
The rise in gold to over 592 MYR per gram is a signal we should pay attention to. This movement reflects gold’s traditional role as a safe haven during periods of economic uncertainty. The coming weeks look volatile, and gold is reacting as we would expect.
We saw the Federal Reserve pause its rate-cutting cycle last quarter after inflation proved stickier than anticipated, with September’s Consumer Price Index (CPI) coming in at 3.1%. This environment of high, uncertain interest rates makes a non-yielding asset like gold more attractive as a store of value. The market is now pricing in a lower probability of further cuts before year-end, which adds to this uncertainty.
We must also consider the strong underlying demand from central banks, which has continued since the record-breaking purchases we saw back in 2022. Reports from the World Gold Council throughout 2024 and into this year confirmed that emerging economies are consistently adding to their reserves. This creates a solid floor for gold prices, limiting significant downside risk for traders.
Gold’s inverse correlation with the US Dollar is key here, and with the recent dip in the DXY index below 104, gold has found room to climb. Furthermore, with equity market volatility picking up—the VIX has been hovering around 19 this month—traders are seeking hedges against potential stock market pullbacks. This risk-off sentiment is directly benefiting gold.
For the weeks ahead, buying call options on gold futures (GC) offers a defined-risk way to capitalize on further upside. Consider bull call spreads to lower the upfront premium cost if you expect a moderate, steady rise rather than an explosive breakout. This strategy balances potential profit with the cost of entry in a volatile market.
We should closely watch the upcoming Federal Reserve statements and the next inflation report for guidance. Any hint of a more dovish stance could fuel another leg up in gold prices. Also, keep an eye on geopolitical headlines, as any escalation in global trade tensions will likely send investors flocking back to gold.
