Record High Gold Trading Volume... Anxious Investors Flock Amid US-Iran Tensions

Trading Volume of 272.6kg on the 8th... Highest Since Opening in 2014
Price Also Near Record High

[Asia Economy Reporter Minwoo Lee] Domestic gold trading volume has reached an all-time high. This is due to funds flowing into safe assets amid escalating tensions between the United States and Iran.

The Korea Exchange announced on the 8th that the gold market's trading volume and trading value recorded 272.6 kg and 16.4 billion KRW, respectively. This is the highest since the market opened in March 2014.

Gold prices also rose significantly. Compared to January 8 of last year, the price increased by 29.3% to 60,010 KRW per gram. This is close to the all-time high of 61,300 KRW recorded in August last year.

The ongoing conflict between the United States and Iran has increased international interest in gold, a representative safe asset. On this day, the international gold price recorded $1,593.84 per ounce, a 24.2% increase compared to January 8 of last year. Since domestic gold prices apply exchange rates to international gold prices and add production costs and distributor margins, it is analyzed that the domestic prices were directly affected. Meanwhile, domestic individual investors have cumulatively net sold 247 kg so far this year.

Earlier, on the 3rd (local time), the United States killed Qasem Soleimani, commander of the Iranian Quds Force (elite unit of the Revolutionary Guards), in a drone strike. In retaliation, Iran attacked U.S. military bases in Iraq with missiles on the 8th (local time).