Gold prices in the Philippines dropped on Monday. The price per gram was PHP 5,846.05, a decrease from PHP 5,929.07 on Friday.

For Gold measured per tola, the cost decreased to PHP 68,187.17, down from PHP 69,155.48. In terms of a Troy Ounce, the price was recorded at PHP 181,832.60.

Role Of Central Banks

Central banks are the largest holders of Gold, using it to bolster currency during unstable times. They purchased 1,136 tonnes in 2022, the biggest annual purchase recorded.

Gold typically has an inverse correlation with the US Dollar and Treasuries. When the Dollar weakens, Gold usually rises as a hedge against economic instability.

Variations in Gold prices occur due to geopolitical factors or fears of recession. The relationship with interest rates is also crucial as Gold prices often increase with lower rates and fall with higher ones.

With prices seeing a notable dip from Friday’s levels, those of us closely monitoring short-term momentum can begin factoring in a recalibration of positioning. The fall from PHP 5,929.07 to PHP 5,846.05 per gram isn’t just nominal—it reflects a broader response to external pressures, particularly stemming from recent shifts in global sentiment around inflation expectations and currency strength. When viewed per tola, the drop to PHP 68,187.17—down nearly a full thousand pesos—underlines the softening demand or waning of speculative pushes that previously kept higher bid levels stable.

From what we’ve observed, fluctuations like these often follow cues from movements in the Dollar and demand for safe-haven assets. It helps to consider the Dollar’s recent firmness, which has been nudging Gold lower despite modest geopolitical tremors. The inverse dynamic there isn’t just theoretical—it’s one we see play out in real time. For traders operating on leverage, this can affect margin requirements and execution timing, especially if volatility remains below average and directional moves are brief but persistent.

Impact Of Interest Rates

Last week’s numbers still echo the impact of prominent institutional behaviour. In 2022, global central banks—who by far dominate physical accumulation—purchased over 1,100 tonnes of Gold. That set a new record, highlighting how state players respond when inflation hedges become more attractive than sovereign debt. These reserve managers aren’t reacting impulsively—they are building buffers against long-term currency erosion and diversifying away from traditional holdings in uncertain periods.

Rates, however, are not backing Bulls at the moment. Higher interest rates tend to increase the yield on cash and comparable short-term instruments, undercutting the appeal of holding metals that generate no income. If policymakers reinforce hawkish stances and issue stronger rate guidance in the coming weeks, we’ll likely see continued pressure. Traders focusing on derivatives tied to Gold’s forward curve must consider how expectations for real yields will develop, particularly if inflation metrics in the upcoming cycle fail to cool.

Fears of recession, if carried further by weaker manufacturing data or heightened tensions in Eastern Europe, could provide temporary relief, especially across longer-dated contracts. But that depends entirely on where the Dollar moves next.

We’re tracking subtle shifts more than sharp turns right now—which means acting quickly on smaller breakouts while maintaining discipline on expiry and leverage risk. Directional conviction is lower than earlier in the quarter. Best to remain descriptive in our execution—avoiding overextension—especially when cross-asset volatility levels remain contained. Much of the movement this week might come not from spot changes, but expectations around when rate cuts could plausibly resume.

Create your live VT Markets account and start trading now.