Gold prices in the Philippines decreased on Monday, according to FXStreet data. The price per gram dropped to 8,544.30 PHP from 8,573.07 PHP on Friday. The price per tola also fell to 99,662.10 PHP from 99,994.55 PHP.
Fxstreet Overview
FXStreet adapts international gold prices to Philippine Pesos, updating daily based on market rates at publication time. These prices are for reference, with the potential for slight variances in local rates.
Gold has historically served as a store of value and a medium of exchange. Today, it is considered a safe-haven asset during unstable periods and a hedge against inflation and currency depreciation.
Central banks are the largest purchasers of gold, enhancing economic and currency strength. In 2022, they added 1,136 tonnes of gold, approximately $70 billion, to their reserves. Notable buyers include central banks from China, India, and Turkey.
Gold inversely correlates with the US Dollar and US Treasuries, increasing in value when the dollar weakens. It also shows an inverse relationship with risk assets like stocks. Geopolitical issues or recession fears can increase gold prices, as can lower interest rates.
The recent small drop in gold prices should be viewed as a potential opportunity, not a sign of weakness. We see this minor dip as market noise before a potentially significant move upward in the coming weeks. Gold’s role as a hedge against currency depreciation remains a core reason for holding it, especially given the current economic climate.
Impact Of Us Federal Reserve Decisions
We are watching the US Federal Reserve very closely as we close out 2025. After the aggressive rate hikes we saw back in 2023 and 2024, the Fed’s latest meetings signal a clear dovish pivot, with markets now pricing in at least two rate cuts in the first half of 2026. As a yield-less asset, gold tends to perform well when interest rates are expected to fall.
This anticipated shift in monetary policy is putting pressure on the US Dollar. The Dollar Index (DXY) has already fallen below 98, a stark contrast to the highs above 105 we witnessed in previous years. A weaker dollar typically has an inverse correlation with gold, making the metal cheaper for holders of other currencies and boosting its appeal.
Demand from central banks continues to provide a strong floor for prices. While not quite reaching the record-breaking levels of 2022, the World Gold Council’s Q3 2025 report confirmed that central banks, particularly from emerging economies, added over 800 tonnes to their reserves this year. This ongoing de-dollarization trend shows institutional players are still committed to gold.
Looking at broader markets, the rally in stocks appears to be losing steam, with the S&P 500 trading sideways for the last quarter. This suggests investor caution is growing as we head into 2026. A sell-off in riskier assets often leads to a flight to safety, directly benefiting safe-haven assets like gold.
