Insights 
VT 
Gold prices in the Philippines remained largely unchanged on Thursday. According to FXStreet, gold was priced at 7,526.76 Philippine Pesos per gram, slightly down from 7,530.19 PHP the previous day.
The cost per tola stood at PHP 87,790.68, a minor decrease from PHP 87,830.66. Other unit prices include 10 grams at 75,264.73 PHP and a troy ounce at 234,104.30 PHP.
Gold Pricing Factors in the Philippines
Gold pricing in the Philippines is determined by adapting international prices to local currency rates. Daily updates reflect market conditions at publication time, although local rates might vary slightly.
Gold has historically served as a store of value, used extensively in jewellery, and is regarded as a safe-haven asset during unstable economic periods. Central banks are major gold purchasers, adding 1,136 tonnes in 2022 to support their economies.
Gold exhibits an inverse relationship with the US Dollar and US Treasuries. The price is affected by geopolitical tensions, recession fears, and interest rates. Lower rates typically raise gold prices, while higher rates may suppress them. A weaker US Dollar generally causes gold prices to rise.
The current stability in the gold price is deceptive given the wider market turmoil. We are now nine days into the US federal government shutdown that began on October 1, 2025, creating significant economic uncertainty. This kind of instability typically boosts gold’s appeal as a safe-haven asset for investors.
Gold vs the US Dollar
However, the US Dollar is also acting as a safe haven, which is creating a headwind for gold. The Dollar Index (DXY) has climbed above 107, making gold more expensive for holders of other currencies and capping its upward potential for now. This explains why gold has struggled to decisively break higher despite the political chaos in both the US and France.
The key factor to watch is the Federal Reserve’s next move, as lower interest rates make non-yielding gold more attractive. Markets are pricing in a more than 80% probability of at least two more interest rate cuts before the end of 2025, according to the CME FedWatch Tool. This expectation is providing a strong underlying support for gold, even with the strong dollar.
We should not ignore the foundational support from central banks, which have been consistently buying gold since their record purchases back in 2022. Recent World Gold Council data for Q3 2025 confirms that central banks, led by emerging economies, continued to be strong net buyers. This consistent demand absorbs market supply and provides a long-term floor for the price.
Given these conflicting signals, we see increased market volatility, with the VIX index holding above 25. For derivatives traders, this suggests that using options may be a prudent strategy over the coming weeks. Buying call options or bull call spreads allows for participation in potential upside driven by rate cuts, while limiting the risk from a persistently strong US dollar.
