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Philippines gold price today gold rises according to fxstreet data
Developing
In Short: Inflation in the UK has surged to its highest level in five months, driven by rising petrol and diesel prices, while gold prices have also seen a rise in the Philippines.
UK inflation has accelerated to 3.1% from 2.9%, according to the Office for National Statistics (ONS), with petrol prices reaching their highest level in nearly four years. The ONS reported that motor fuel prices rose by 23% compared to August last year, with average petrol prices climbing to 161.3p per litre, up 9.1p from the previous month. The Bank of England has held interest rates but warned that they may rise if high energy prices continue, with Governor Andrew Bailey stating that the longer the volatility persists, the bigger the impact on inflation.
In the Philippines, gold prices have also seen an increase, according to data from FXStreet. The price for gold stood at 8,670.82 Philippine Pesos (PHP) per gram, up from the previous day's cost of 8,601.65 PHP. The price for gold increased to PHP 101,132.40 per tola from PHP 100,327.90 per tola a day earlier. This rise in gold prices is part of a broader trend where central banks are adding to their gold reserves, with the World Gold Council reporting that central banks added 1,136 tonnes of gold worth around $70 billion in 2022.
Gold is widely seen as a hedge against inflation and against depreciating currencies, as it doesn’t rely on any specific issuer or government. High gold reserves can be a source of trust for a country’s solvency, and central banks from emerging economies such as China, India, and Turkey are increasing their gold reserves. The inverse correlation between gold and the US Dollar and US Treasuries, which are both major reserve and safe-haven assets, further underscores gold's role as a store of value.
The UK's inflation rate has been pushed up by the Iran war and disruption to global supplies, including liquefied natural gas. The VAT cut will only partially offset the impact of higher gas prices, according to Yael Selfin, chief economist at KPMG. She warned that household energy bills could rise by a further double-digit amount from January, with an even larger increase possible if wholesale prices climb further. The Bank of England has held interest rates but warned that they may rise if high energy prices continue, with Governor Andrew Bailey stating that the longer the volatility persists, the bigger the impact on inflation.
Background
The Philippines, officially the Republic of the Philippines, is an archipelagic country in Southeast Asia. Located in the western Pacific Ocean, it consists of about 7,641 islands, with a total area of about 300,000 square kilometers.
What's confirmed
- Gold prices rose in Philippines on Thursday, according to data compiled by FXStreet.
- Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council.
- A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. (An automation tool was used in creating this post.) Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet.
- The price for Gold stood at 8,670.82 Philippine Pesos (PHP) per gram, up compared with the PHP 8,601.65 it cost on Wednesday.
- The price for Gold increased to PHP 101,132.40 per tola from PHP 100,327.90 per tola a day earlier.
- Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange.
- Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
- In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency.
What's still developing
- "This is the highest price recorded since November 2022," said the ONS.
- Capital Economics said, at this point, the effect of higher oil prices has not spilled over into other areas such as food and drink, where the pace of inflation remained at 1.3% in the year to August.
- Raven said changes in the oil price have a "real-time impact on us".
- Gold is facing fresh sellers above $4,300 early Thursday, stalling its recovery from six-week lows of $4,235 reached soon after hawkish US Federal Reserve monetary policy announcements.
- Speaking after the Bank's decision, Bailey said the direct impact of higher energy prices was clear, but officials were still assessing how far those costs would feed through into wider inflation across the economy.
- While financial markets have priced in the possibility of several rate rises next year, Bailey said the global backdrop remained "hugely unpredictable at the moment".
- He said that for interest rates to come down we would need to see "an end of conflict in the Middle East... and energy prices coming really back to where they were before this conflict began".
- It also said that because the effect of higher energy costs had not yet spilled over into other areas of the economy, food price inflation was now predicted to rise 4% by the end of the year, less than the Bank's previous forecast of 6-7%.