Gold prices in the Philippines experienced a slight decline on Tuesday, as reported by FXStreet. The price of Gold was recorded at 4,540.89 Philippine Pesos (PHP) per gram, down from the previous day’s price of PHP 4,549.93. Similarly, the price per tola decreased to PHP 52,964.09 from PHP 53,069.54.
FXStreet calculates Gold prices in the Philippines by adjusting international prices (USD/PHP) to the local currency and measurements. These prices are updated daily based on market rates at the time of publication, serving as a reference point as local rates may vary slightly. Gold is historically significant as a store of value and medium of exchange, with its current role as a safe-haven asset during uncertain times. Apart from its decorative use in jewelry, Gold is perceived as a hedge against inflation and depreciating currencies due to its independence from specific issuers or governments.
Central banks are major players in the Gold market, holding significant reserves to strengthen their currencies during economic turbulence. In 2022, central banks globally added 1,136 tonnes of Gold worth approximately $70 billion to their reserves, the highest annual purchase on record. Emerging economies like China, India, and Turkey are rapidly increasing their Gold reserves as a sign of economic stability and security.
Gold exhibits an inverse correlation with the US Dollar and US Treasuries, major reserve and safe-haven assets. When the Dollar weakens, Gold prices tend to rise, providing investors and central banks with diversification options during uncertain market conditions. Additionally, Gold is negatively correlated with risk assets, as a bullish stock market can suppress Gold prices while a downturn in riskier markets benefits the precious metal.
Several factors can influence Gold prices, including geopolitical instability, economic recessions, and changes in interest rates. As a non-yielding asset, Gold tends to rise when interest rates are low, while a high cost of borrowing can impact its price negatively. The behavior of the US Dollar, as Gold’s pricing currency, is also a key determinant of its price fluctuations. A strong Dollar typically suppresses Gold prices, while a weaker Dollar tends to drive them higher.
