Insights 
VT 
On Friday, gold prices in the Philippines increased, based on FXStreet data. The price per gram rose to PHP 8,147.66 from PHP 8,086.72 the previous day. For tola, the price increased to PHP 95,033.70 from PHP 94,321.95.
FXStreet adapts international gold prices (USD/PHP) to local currency, updating daily based on market rates. Local rates may slightly differ from the mentioned figures.
Gold’s Historical Value
Gold is valued for its historical role as a store of value and medium of exchange. It serves as a safe-haven investment during turbulent periods and is a hedge against inflation and currency depreciation.
Central banks hold the most gold, purchasing 1,136 tonnes worth around $70 billion in 2022, marking the highest yearly purchase. Emerging economies like China, India, and Turkey are rapidly increasing their reserves.
Gold inversely correlates with the US Dollar and Treasuries. When the Dollar depreciates, gold’s value typically rises. It also inversely correlates with risk assets, where a stock market rally weakens gold prices.
Geopolitical instability and fears of a recession can elevate gold prices. Gold typically rises with lower interest rates, and a strong US Dollar keeps its price controlled.
Global Trends in Gold Pricing
The recent rise in gold prices to over PHP 8,147 per gram reflects a broader global trend we are watching closely. This isn’t just a local currency effect; it’s tied to gold’s international strength. We see this as a signal that the precious metal is reasserting its safe-haven status amid market uncertainty.
The US Federal Reserve’s signal from its September 2025 meeting suggested a continued pause on rate hikes, which is typically bullish for a non-yielding asset like gold. With the latest US inflation data for September 2025 still persistent at 3.1%, investors are increasingly looking for a hedge. This environment makes holding assets that protect against currency devaluation more attractive.
Gold’s inverse relationship with the US Dollar remains a key factor for traders to monitor. The Dollar Index (DXY) has softened, dropping below 104 in recent weeks as markets anticipate a more dovish monetary policy from the Fed. A weaker dollar makes gold cheaper for holders of other currencies, which can boost demand.
Underpinning this strength is the continued buying from central banks, which, according to World Gold Council data, added over 800 tonnes globally through the third quarter of 2025. We have also seen significant inflows into gold-backed ETFs this past month, indicating wider investor conviction. This institutional demand provides a strong floor for prices, a trend that continues from the record purchases seen back in 2022.
For the coming weeks, we believe buying call options on gold futures or ETFs offers a favorable risk-reward profile. Traders could consider near-dated calls to play on short-term volatility or look at bull call spreads to lower the upfront cost. Selling cash-secured puts is another strategy for those who are bullish and willing to acquire the underlying asset at a lower price.
