Gold prices in the Philippines rose on Friday, mirroring global market trends as investors continue to seek refuge in safe-haven assets amid rising economic and geopolitical uncertainty. According to the latest data from FXStreet, the price of gold increased across all standard units of measurement, reflecting sustained demand and a weaker U.S. dollar.
As of Friday, the price of gold stood at ₱5,907.45 per gram, marking a notable rise from ₱5,872.48 recorded the previous day. Similarly, the price per tola climbed to ₱68,903.16, up from ₱68,495.41. Gold prices per 10 grams reached ₱59,073.98, while one troy ounce was valued at ₱183,742.70.
Global Drivers Fuel Local Gains
The increase in local gold prices comes as part of a broader rally in global bullion markets. Internationally, gold has seen a strong upswing over the past week, driven by mounting concerns over the U.S. fiscal outlook following the passage of a massive tax and spending package. The legislation, expected to significantly expand the U.S. national debt, has led investors to seek stability in traditional stores of value like gold.
Adding to this trend is the continued weakening of the U.S. dollar. The greenback has posted its worst weekly performance since early April, sliding more than 1% amid soft demand in Treasury bond auctions and growing speculation that the U.S. Federal Reserve may soon pause rate hikes. A weaker dollar makes gold more affordable for holders of other currencies, thus boosting international demand.
Local Market Impact
In the Philippines, gold prices are closely tied to global spot rates and foreign exchange movements. The depreciation of the Philippine peso against major currencies has also contributed to higher domestic gold prices, magnifying the impact of international trends.
Retail demand for gold in the country typically rises during periods of global instability, with many Filipinos turning to gold not only as an investment vehicle but also as a form of wealth preservation. Jewelers and bullion dealers in the local market have reported increased inquiries and transactions as the precious metal continues to gain value.
Geopolitical and Market Uncertainty
Geopolitical tensions, particularly in the Middle East, have added another layer of support for gold. Heightened conflict risks, including recent warnings from Iran over potential Israeli strikes, have increased global risk aversion, prompting investors to reduce exposure to volatile equities and cryptocurrencies.
Financial analysts also note that while interest in alternative assets such as Bitcoin has risen, gold remains a cornerstone of conservative investment strategies, especially amid weakening equity markets and uneven economic data.
Outlook
Market watchers remain focused on upcoming economic indicators from the United States, including PMI readings and housing data, which could influence the Federal Reserve’s next policy move and shape the trajectory of the U.S. dollar.
In the local context, gold prices are expected to remain elevated in the near term, particularly if global uncertainty persists and currency volatility continues.
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