Insights 
VT 
Gold prices in the Philippines increased on Friday. FXStreet data shows the cost per gram climbed to 7,880.74 Philippine Pesos (PHP), compared to PHP 7,821.48 on Thursday. The price per tola rose to PHP 91,919.34 from PHP 91,228.17.
FXStreet adapts international gold prices into local currency using current market exchange rates. Daily updates mean local variations might slightly differ. The price is also set in increments like grams, tolas, and troy ounces, with the price of a troy ounce noted at 245,119.90 PHP.
Gold as a Store of Value
Gold is historically used as a store of value, serving as a hedge during financial instability. Central banks are prominent purchasers of gold, with 1,136 tonnes added in 2022 as a stabilising asset. This action enhances economic resilience and confidence in a country’s solvency.
Gold inversely correlates with assets like the US Dollar and US Treasuries. When the Dollar declines, gold often increases in value. Factors like geopolitical tensions and fluctuating interest rates directly impact gold prices. A weaker USD typically boosts gold prices due to its pricing in USD (XAU/USD).
The rise in gold to 7,880.74 PHP per gram on our screens today, November 28, 2025, reflects a weaker US dollar. This move is consistent with the asset’s inverse relationship with the dollar, which has been softening for several weeks. We should view this not as a one-day event, but as part of a developing trend.
Market expectations are leaning towards a more dovish stance from the US Federal Reserve, especially after recent economic data from October 2025 showed a slowdown in growth. Looking back at the rate hike cycle of 2023-2024, any signal of future rate cuts makes non-yielding gold more attractive. This sentiment suggests that long positions in gold derivatives could be profitable.
Gold as a Hedge
We must also consider gold’s role as a hedge against currency depreciation and inflation. With the Philippine Peso currently trading at a weaker level against the dollar than it was earlier this year, holding gold provides a buffer for local portfolios. The persistent memory of the high inflation we saw over the past couple of years continues to support this view.
Underlying demand provides a strong foundation for higher prices, as central bank buying remains robust. Fresh data from the third quarter of 2025 showed that central banks, particularly from emerging markets, added another 260 tonnes to their reserves. This consistent buying provides a solid price floor and reduces the risk of a major sell-off.
Ongoing geopolitical instability in several regions is also increasing gold’s appeal as a safe-haven asset. Any unexpected flare-up would likely send investors out of equities and into the perceived safety of gold. Therefore, using gold derivatives can serve as an effective hedge against volatility in our other riskier positions.
A straightforward strategy for the coming weeks would be to buy call options on gold futures. This allows us to capture potential upward price movements driven by the factors we see. It also clearly defines our maximum risk to the premium we pay for the options.
