Gold Prices Hit Highest in 6 Months... Asian Stock Markets Weaken

As international gold prices reached their highest level in over six months, major Asian stock indices fell together.

According to the international financial market on the 27th, global gold prices rose by $17.39 (0.869%) during the day to close at $2018.21 per ounce. This is the highest level since May 16.

International gold prices showed significant volatility, hitting a low of $1614.96 in September last year, rebounding to $2062.99 in May this year, and then falling to $1810.51 in early October. The recent rise in gold prices reflects the market's perception that the US Federal Reserve's interest rate hikes have effectively ended.

The Dollar Index, which measures the value of the dollar against six currencies including the euro and yen, fell by 0.073 to 103.330 compared to the previous day, marking its lowest level since September 1. The Dollar Index has dropped about 3% since the beginning of this month.

Photo by Yonhap News

Meanwhile, major Asian stock indices showed weakness on the day. Japan's Nikkei 225 average closed down 0.53%, while the KOSPI fell 0.04%, Taiwan's TAIEX dropped 0.87%, and Australia's S&P/ASX 200 declined 0.75%.

Mainland China's Shanghai Composite Index (-0.30%), Shenzhen Component Index (-0.38%), and the CSI 300 Index (-0.74%), which consists of the top 300 stocks by market capitalization on the Shanghai and Shenzhen stock exchanges, also closed lower.

The decline in Asian stock prices on the day is attributed to factors such as the slowdown in China's industrial profits. According to Chinese authorities, China's industrial profits in the previous month increased by 2.7% year-on-year, marking a positive growth for three consecutive months. However, the growth rate slowed compared to August (17.2%) and September (11.9%).