Gold prices rose in Malaysia on Friday, according to data compiled by FXStreet.
The price of gold was 393.48 Malaysian ringgit (MYR) per gram, compared to 390.81 Malaysian ringgit (MYR) per gram.
The price of gold rose to RM4,589.38 per tola compared to RM4,558.32 per tola the previous day.
| Unit measurement | Gold price in Malaysian ringgit |
|---|---|
| 1 gram | 393.48 |
| 10 grams | 3,934.72 |
| Tula | 4,589.38 |
| Troy ounce | 12,238.79 |
FXStreet calculates gold prices in Malaysia by adapting international rates (USD/MYR) to the local currency and units of measurement. Prices are updated daily based on market prices taken at the time of publication. Prices are for reference only and local prices may vary slightly.
Frequently asked questions about gold
Gold has played a major role in human history as it has been widely used as a store of value and a medium of exchange. Currently, apart from its luster and use in jewellery, the precious metal is widely viewed as a safe haven asset, meaning it is a good investment during turbulent times. Gold is also widely viewed as a hedge against inflation and against currency depreciation because it is not dependent on any specific issuer or government.
Central banks are the largest holders of gold. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and purchase gold to improve the perceived strength of the economy and the currency. High gold reserves can be a source of confidence for a country’s solvency. Central banks added 1,136 tons of gold worth about $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest annual purchase since records began. Central banks in emerging economies such as China, India and Turkey are rapidly increasing their gold reserves.
Gold has an inverse relationship with the US dollar and US Treasuries, which are major reserve assets and safe havens. When the value of the dollar declines, gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rise in the stock market tends to weaken the price of gold, while a sell-off in riskier markets tends to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession could cause the price of gold to rise rapidly due to its safe-haven status. As a lower-yielding asset, gold tends to rise as interest rates fall, while a higher cost of money usually negatively impacts the yellow metal. However, most of the moves depend on how the US Dollar (USD) behaves as the asset is priced in Dollars (XAU/USD). A stronger dollar tends to keep the price of gold in check, while a weaker dollar is likely to push gold prices higher.
(An automation tool was used to create this post.)