Insights 
VT 
Gold prices in the Philippines decreased on Thursday. According to FXStreet, the price per gram dropped to 7,713.80 Philippine Pesos from 7,728.34 PHP the previous day.
The price for a tola decreased to PHP 89,969.55, down from PHP 90,141.87. FXStreet updates these Philippine prices daily, reflecting international rates adjusted for local currency and units.
Gold As An Economic Hedge
Gold serves as a hedge against inflation and currency devaluation. Central banks, especially from emerging economies, hold significant gold reserves to bolster economic strength.
Gold’s price often inversely correlates with the US Dollar and US Treasuries. Economic uncertainties and dollar fluctuations impact gold’s appeal as a safe haven.
The market is influenced by several factors, including geopolitical tensions and interest rates. Investors may resort to gold during economic instability due to its status as a yield-less asset.
We are seeing a minor dip in gold prices today, which is a normal fluctuation in the market. This slight pullback should not be seen as a new trend, but rather as a potential buying opportunity. The broader economic environment suggests underlying support for the precious metal in the coming weeks.
Current Market Conditions
The current market mood is cautious, largely due to the ongoing US government shutdown and the related data blackout. This uncertainty is increasing risk aversion and typically sends investors toward safe-haven assets like gold. We expect this dynamic to outweigh the small price drop we have observed today.
Looking back, we saw central banks purchase a record 1,136 tonnes of gold in 2022, and this trend has not stopped. Reports from early 2025 showed that central banks, especially in emerging economies, remained aggressive buyers, adding nearly 290 tonnes in the first quarter alone. This consistent institutional demand creates a strong price floor for gold.
The uncertainty in the US makes it less likely that the Federal Reserve will raise interest rates, which could weaken the dollar. A softer dollar is typically bullish for gold, as the metal is priced in USD. This inverse relationship is a key factor we are watching as the government shutdown continues.
Given this backdrop, we should consider buying call options on gold. This strategy allows us to profit from a potential price increase with limited downside risk. Today’s slight price decrease makes the entry cost for these options marginally more attractive.
For those of us with significant exposure to equities, now is a good time to hedge. Buying gold futures can help protect portfolios against a potential stock market decline fueled by geopolitical tensions or the situation in the US. This acts as a prudent insurance policy in such an uncertain climate.
