The first gifts were given by the Wise Men to the baby Jesus of Gold, Frankincense and Myrrh per Christian beliefs.
I think the reason we give to each other is to show our love for others the same way the Wise Men celebrated Jesus Birth. There are no physical Gifts we can give to Jesus Christ so we must give to those close to us.
But, must we? Gifts should be given freely and with an open heart. Not a “Oh, since he got me something, I Have to get him something.”. Gifts should not be obligatory nor should you expect to receive. In my opinion, Gifting should be done with care based on what the person would really appreciate. If you try for a gag Gift, be sure you know their sense of humor. I have shared before that I am a Gifter. I keep lists of what to who and when so as not to repeat from one year to the next.