Falling Gold Prices... Approximately 5% Sharp Decline Domestically

Largest Daily Drop Since Market Opening
International Gold Price Decline Spreads Domestically

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] As international gold prices plummeted, prices also fell in the domestic gold market.

As of 10:16 a.m. on the 12th, the price per gram of 1 kilogram (kg) gold spot in the Korea Exchange (KRX) gold market was 73,520 won. This is a 4.73% drop compared to the previous day. It is the largest daily decline since the KRX gold market was established in March 2014.

The decline in international gold prices appears to have affected the domestic market as well. On the 11th (local time), optimism about overcoming COVID-19 emerged as the novel coronavirus (COVID-19) vaccine was registered for the first time in the world in Russia, causing international gold prices to falter. On that day, December delivery gold on the New York Mercantile Exchange closed at $1,946.30 per ounce, down 4.6% ($93.40) from the previous day. This is the largest drop in dollar terms since April 15, 2013. In terms of percentage, it was the largest decline since March 13.

Silver prices also plunged by about 14% intraday, marking the largest single-day drop since October 2008. At the same time, on the Korea Exchange, 'KODEX Eunseonmul(H)' traded at 5,345 won, down about 10% from the previous day.