Gold prices in Malaysia fell on Monday, based on FXStreet data. Gold was MYR 609.53 per gram, down from MYR 614.26 on Friday.
Gold eased to MYR 7,109.47 per tola from MYR 7,164.64 per tola on Friday. Other listed prices were MYR 6,095.33 for 10 grams and MYR 18,958.91 per troy ounce.
FXStreet calculates Malaysia’s gold prices by converting international prices using the USD/MYR rate and local units. Rates are updated daily at the time of publication and are for reference, with local prices possibly differing slightly.
Central banks are the largest holders of gold and use it to diversify reserves. They added 1,136 tonnes worth around $70 billion in 2022, the highest yearly purchase on record, according to the World Gold Council.
Gold often moves inversely to the US Dollar and US Treasuries, and can also move opposite to risk assets such as shares. Prices may also shift with geopolitical events, recession fears, and changes in interest rates, as gold is priced in US dollars (XAU/USD).
Gold prices have seen a slight dip, which we see not as a sign of weakness but as a potential consolidation within a larger uptrend. This minor pullback could present an opportunity for positioning in the coming weeks. Traders should look beyond the daily noise and focus on the underlying macroeconomic factors.
The market is increasingly pricing in potential US Federal Reserve interest rate cuts later this year, putting pressure on the dollar. A weaker dollar and lower rate expectations are strong tailwinds for gold. Recent data shows the Dollar Index (DXY) has fallen from its early 2026 highs, which supports this outlook on precious metals.
Looking back from 2025, we recall the record-breaking central bank purchases in 2022, a trend that has not stopped. World Gold Council data through 2024 confirmed that central banks were massive net buyers, absorbing over 1,000 tonnes for two consecutive years. This consistent demand provides a strong floor under the market, limiting the downside of any pullbacks.
Ongoing geopolitical instability also reinforces gold’s role as a safe-haven asset, adding to its appeal. Therefore, we are considering buying call options with expirations in the third quarter of 2026 to capitalize on potential upside. This strategy allows for leveraged exposure to rising prices while defining our maximum risk.
