"This Year's Gold Price Target Raised to $2000~2330"

Upgrade to 'Overweight' Investment Rating
Capital Inflow Expected into ETFs After June FOMC

[Image source=Yonhap News]

NH Investment & Securities has raised its long-term target price for gold to $2,600 per ounce this year and upgraded its investment opinion on gold to 'Overweight.'

Hwang Byung-jin, a researcher at NH Investment & Securities, stated on the 11th, "The upward trend in gold prices, which is entering a Bull Cycle during the global monetary policy 'easing' phase, has now fully begun," adding, "We have raised this year's expected gold price range to $2,000?$2,330."

On the 8th, 1kg gold spot in the KRX gold market closed at 91,740 KRW per gram, down 0.64% from the previous trading day. During the session, it rose to 92,530 KRW, marking the highest price since the KRX gold market began trading in 2014. This rise in gold prices is interpreted as reflecting expectations of an accommodative monetary policy this year.

Researcher Hwang explained, "Although there is short-term caution about overbuying related to the divergence between the physical holdings of gold ETFs and gold prices, central banks' gold purchases for diversifying foreign exchange reserves amid the dominance of the US dollar are outweighing the decrease in physical holdings of ETFs."

He further analyzed, "Investment funds led by ETFs are expected to flow in full force after the Federal Open Market Committee (FOMC) meeting in June, when the first interest rate cut is anticipated."