Insights 
VT 
Gold prices in Malaysia rose, according to FXStreet. The price per gram increased to 576.03 Malaysian Ringgits (MYR) from 571.94 MYR, while the price per tola rose to 6,718.69 MYR from 6,671.03 MYR.
FXStreet adapts international prices to local currency and measurement for Malaysia. Prices are updated daily and may slightly diverge from actual local rates.
Gold As A Safe Haven
Gold is traditionally used as a store of value and is considered a safe-haven asset during turbulent times. It is widely perceived as a hedge against inflation and currency depreciation.
Central banks hold the most Gold, aiming to support their currencies by diversifying reserves. In 2022, central banks added 1,136 tonnes of Gold, worth roughly $70 billion, to their reserves, with emerging economies like China, India, and Turkey increasing their holdings.
Gold has an inverse correlation with the US Dollar and US Treasuries. A depreciating Dollar usually results in rising Gold prices, while stock market rallies can weaken Gold prices. Gold tends to rise with lower interest rates and is impacted by geopolitical instability and recession fears.
The price of Gold, typically priced in dollars, fluctuates based on several factors, including the US Dollar’s behaviour.
Gold Market Trends
With gold prices showing strength today, we are seeing this as more than a short-term reaction. The metal’s status as a hedge against inflation and currency depreciation is becoming increasingly relevant. This upward trend reflects a broader market sentiment favoring safe-haven assets.
The outlook for US interest rates is a significant tailwind for gold. After the aggressive rate-hiking cycle that concluded in 2024, futures markets are now pricing in a greater than 70% probability of a rate cut by the second quarter of 2026 as economic growth slows. As a yield-less asset, gold becomes more attractive when interest rates are expected to fall.
This sentiment is weighing on the US Dollar, which has an inverse relationship with gold. The Dollar Index (DXY) has softened by over 3% in the past quarter, making gold cheaper for holders of other currencies and boosting global demand. We expect this pressure on the dollar to continue as the Federal Reserve’s dovish pivot becomes more certain.
Institutional demand provides a strong floor for the price. Looking back, central banks added a record 1,037 tonnes in 2022, and this robust buying has continued through 2024, with the World Gold Council reporting another 800 tonnes were added to official reserves last year. This ongoing diversification away from the dollar by emerging market banks is a powerful, long-term supportive factor.
Geopolitical tensions and signs of a slowing global economy are also pushing investors toward safety. Equity market volatility has increased, and we are seeing a classic flight to quality. This environment reinforces gold’s role as a crucial portfolio diversifier during turbulent times.
For traders, this suggests positioning for further upside in the coming weeks. We believe long call options or bull call spreads on gold futures offer a defined-risk way to capitalize on this expected move. We are watching the $2,150 per ounce level as a key area of support for initiating new positions.
