The Korea Exchange (KRX) gold market has reached an all-time high price.
According to the exchange, on the 4th, the price per gram of 1kg gold spot in the KRX gold market closed at 89,040 KRW, up 1.96% from the previous trading day. This is the highest price since the KRX gold market began trading on March 24, 2014. The previous highest price in the KRX gold market was 87,730 KRW, recorded on January 16.
The record high is believed to be influenced by the rise in international gold prices due to increased expectations of an interest rate cut by the Federal Reserve (Fed).
Jeon Gyu-yeon, a researcher at Hana Securities, said, "The recently released January U.S. Personal Consumption Expenditures (PCE) price index met expectations, increasing hopes for an interest rate cut, which seems to have affected the upward trend in gold prices. In addition, the preference for safe assets has grown amid geopolitical tensions in the Middle East, which also had some impact."
The core PCE price index for January in the U.S., announced on the 29th (local time), rose 2.8% compared to the same period last year, slowing down from the 2.9% increase in the previous month, meeting market expectations. As a result, forecasts that the Fed will cut interest rates in mid-year or later this year have been strengthened.
On the New York Mercantile Exchange, the April gold futures price on the 1st rose 2.00% from the previous day to close at $2,095.70 per ounce, marking the second consecutive day of gains following the 29th.
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