Gold prices in Malaysia rose on Monday. The price per gram increased from MYR 469.47 on Friday to MYR 476.11, and the price per tola rose from MYR 5,475.83 to MYR 5,553.21.
Other unit prices for gold are MYR 4,761.07 for 10 grams and MYR 14,808.56 for a troy ounce. These prices are calculated by adapting international prices to local currency and may vary slightly from local rates.
The Role Of Gold As A Safe-Haven Asset
Gold has historically been a store of value, serving as a safe-haven asset during turbulent times. It is also a hedge against inflation and currency depreciation.
Central banks are the largest holders, purchasing 1,136 tonnes in 2022 to strengthen currencies, particularly in emerging economies like China, India, and Turkey. Gold has an inverse correlation with the US Dollar and Treasuries, and its price is affected by geopolitical instability, interest rates, and the value of the USD.
The price of gold can be influenced by various factors, and individuals should conduct thorough research before making investing decisions. Statements about market behaviour involve risks and are for informational purposes only.
The upward movement in local gold prices at the start of the week reflects external shifts more than domestic buying pressure. We saw the gram price climbing just over 1.4% since Friday, while other units mirrored that trend with notable consistency across different weights. That type of synchronisation hints that conversion from global benchmarks, possibly underpinned by a weaker Ringgit against the Dollar, is behind the most recent lift. When prices move in concert across units like this, it’s usually not retail demand but currency effects and international price anchoring that are responsible.
Local gold valuations get recalibrated in real time based on international spot prices, which are quoted in US Dollars, and then exchanged using the prevailing currency rates. Any broad shifts in Federal Reserve policy or changes in Malaysian central bank posturing can therefore ripple through quite promptly. When we read that the troy ounce valuation now stands at MYR 14,808.56, it’s important to interpret it as a dynamic reference point, rather than a fixed figure. The international monetary environment informs that number — not local supply and demand alone.
Central Bank Gold Accumulation
Last year’s central bank accumulation, led by China, India, and Turkey, tells us where the foundational demand pressure still lies. These purchases are not impulsive; they’re strategic reserve allocations used to temper dependency on fiat reserves tied to external economies. When central banks act this decisively, they create long-term baseline strength. Yields follow sentiment, but these buying moves provide structural foundation.
We know that gold traditionally ticks upwards when dollar strength falters, which occurs most often when Treasury yields soften or when traders begin pricing in reduced odds of aggressive US rate hikes. That inverse correlation isn’t academic — it forms a basket of trades actively managed by institutional participants. As the greenback weakens, gold usually fills that vacuum as the alternative store of purchasing power. Any breach in economic stability — whether in commodity supply chains, regional disputes affecting energy pricing, or sudden market corrections — all represent potential tailwinds.
From our vantage point, these macro relationships are not abstract ideas but live inputs into contract valuations. If the US CPI reading next week underperforms, it increases the likelihood of market participants moving out of bonds or into inflation-resistant vehicles, which tends to lift gold in parallel. These short-term reactions create price volatility, but longer-term alignment comes only if monetary policy shifts meaningfully.
As we monitor futures and options activity, carry cost, margin exposure and implied volatility offer clearer cues than any single gold price level. Delta traders will want to continue managing exposure around rates-related catalysts. Holding unhedged positions through central bank commentaries this month—especially those hinting at inflation targets—may invite more fluctuation than some portfolios can tolerate.
Our current plan is to watch for any divergence between physical buying reports from Asia and futures movements responding to G7 data. Material dislocation between those can signal directional trades. Gold’s correlation to CPI and rate policy remains the leading variable, but it’s the secondary flow—ETF inflows, producer hedges, miner production announcements—that might either reinforce or challenge price direction over the next two weeks.
We should be particularly aware of liquidity conditions, especially during US holiday sessions and Asian market closures. Lower volume often amplifies price action, which can lead to misreads. The recent price increase is within expected range, and not yet a breakout. We’ll only adjust exposure size when we see confirmation across both options pricing and physical demand reports. Until then, this is a directional move supported by temporary tailwinds, but not yet a broader trend reversal.
