Gold prices in the Philippines declined on Friday, with the price per gram falling to 5,669.08 PHP from 5,691.84 PHP the previous day. The price per tola also decreased to 66,123.76 PHP from 66,388.55 PHP.
Current gold prices in PHP include: 1 gram at 5,669.08, 10 grams at 56,692.61, tola at 66,123.76, and a troy ounce at 176,328.20.
Central Banks And Gold Reserves
Central banks have increased gold purchases, acquiring 1,136 tonnes worth approximately $70 billion in 2022. Major economies like China, India, and Turkey are notably expanding their gold reserves.
Gold prices can fluctuate based on factors such as geopolitical instability and interest rates. A stronger US Dollar typically maintains lower gold prices, while a weaker Dollar tends to elevate them.
The modest pullback in gold prices seen on Friday, reflected in both per gram and per tola valuations, doesn’t come as a surprise when weighed against recent shifts in global currency dynamics. More specifically, as the US Dollar steadies, supported in large part by robust Treasury yields and somewhat restrained inflation expectations, bullion generally finds less room to advance. We can’t disconnect from this pattern, nor should we expect any sustained price climbs without a corresponding softening in the Dollar’s position.
The purchasing behaviour of central banks, meanwhile, remains resolute. With over 1,100 tonnes added to global reserves during 2022, there’s little room for doubting their longer-term faith in bullion as a monetary anchor. However, short-term pricing still dances around more fluid triggers—interest rates, economic data releases, and flashpoints in global politics.
What’s worth observing now, especially with economies like China and India leading official sector buying, is whether that accumulation continues at the same pace. Timing here becomes everything. Even an interruption or pause in sovereign purchases could lead to short-term imbalances, particularly in markets such as Asia where physical demand plays a much greater role in pricing than in the west.
Monetary Policies And Market Dynamics
As we factor in upcoming monetary policy meetings across major economies, along with decisions from the Federal Reserve, derivative pricing is likely to remain compressed within a narrow band. Strengthening US economic indicators could spell headwinds for gold bulls since rising rates decrease gold’s comparative attractiveness. On the other hand, any signs of slowing job growth or cooling inflation might sharpen appetite, forcing re-pricings in futures contracts.
From our perspective, the sharpest risks lie not with the volume of gold held by countries, but in underlying rate expectations. Those trading contracts tied to bullion should pay more attention to two-year and ten-year yield curves rather than focusing solely on headline inflation prints. Yield slope shifts have tended to lead metals pricing by several sessions, and we’ve seen this pattern persist across seasonal trading cycles.
Given physical gold’s recent price behaviour in PHP, it’s unlikely we’ll witness any high-volatility breaks unless external shocks push the currency or liquidity conditions shift meaningfully. We’re approaching a phase where discretion should outpace direction. Rather than reacting to daily spot price movements, traders may want to assess how closely current price levels correspond to implied volatilities and try to identify overpricing or underpricing within options markets.
If premiums remain tight, short-term spreads may offer better value, particularly for those with tighter risk tolerances. For anyone positioned on the longer-end of expiry calendars, it’s worth exploring how much of that curve is pricing in geopolitical tail events—many of which haven’t materialised. There’s been a tendency lately for the market to overprice protection early in the week, only for that premium to decay rapidly by Friday. In response, adjusting entry points to less crowded sessions may offer improved risk-adjusted returns.
Expect this broader alignment between policy signals, yields and central bank flows to continue shaping pricing corridors. But unless fiscal policy missteps or a sudden turn inward by emerging market banks triggers fresh demand, the pressures will continue to come more from sentiment shifts around the Dollar than from real physical shortages.
