Gold prices in the Philippines rose on Wednesday, as reported by FXStreet. The price per gram increased to 7,797.81 Philippine Pesos (PHP) from 7,733.83 PHP on Tuesday. Additionally, the price per tola rose to PHP 90,960.17 from PHP 90,205.90.

The prices for various measures are as follows: 1 gram is 7,797.81 PHP, 10 grams is 77,982.75 PHP, a tola is 90,960.17 PHP, and a Troy ounce is 242,529.80 PHP. FXStreet adjusts the international USD/PHP rates to local currency equivalents, providing daily updates.

Gold as a Store of Value

Gold has historical importance as a store of value and a medium of exchange. It is considered a safe-haven asset and a hedge against inflation and currency depreciation. Central banks are the primary buyers, with purchases reaching 1,136 tonnes in 2022, valued at around $70 billion.

The price of Gold is inversely related to the US Dollar and US Treasuries. Geopolitical instability and recession fears influence its price. Gold tends to perform better with lower interest rates, while a strong US Dollar can suppress its value.

With gold showing strength, we see this as a reaction to a weakening US dollar and shifting expectations for monetary policy. The US Dollar Index (DXY) has recently slipped to around 103.5, a noticeable drop from its highs earlier in 2025, which provides a tailwind for assets priced in dollars. This follows the Federal Reserve’s more cautious tone at the September 2025 meeting, where they held rates steady.

Investment Strategies in Gold

We should be looking at call options or bull call spreads on gold futures to capitalize on potential upside while defining our risk. Implied volatility in the gold market has ticked up, so outright buying long-dated calls might be expensive; spreads offer a cheaper way to express a bullish view. The CME FedWatch tool is now pricing in a 60% chance of a rate cut by the first quarter of 2026, a significant shift from just three months ago.

The persistent buying from central banks, which we saw accelerate back in 2022, continues to provide a strong floor for prices. Through the first three quarters of 2025, central banks have reportedly added over 850 tonnes to their reserves, with emerging markets leading the purchases. This structural demand suggests that any significant dips are likely to be viewed as buying opportunities, making the strategy of selling cash-secured puts on gold ETFs an attractive proposition for generating income.

Considering the lingering inflation, which the last CPI report in September 2025 pegged at a stubborn 3.1%, gold’s role as an inflation hedge is becoming more prominent again. This is not the runaway inflation of 2022, but its persistence above target is causing bond yields to level off. We can use futures contracts, like the December 2025 (GCZ5) contract, to directly speculate on price increases driven by these inflation hedging flows.

Geopolitical tensions also remain a key factor that shouldn’t be ignored, adding to gold’s safe-haven appeal. The ongoing trade negotiations between the US and the Pan-Asian trade bloc are creating uncertainty, which typically benefits non-sovereign assets like gold. This backdrop supports holding a core long position, possibly through futures, while using shorter-dated options to trade around volatility events.

Create your live VT Markets account and start trading now.