Domestic Average Daily Gold Trading Value Exceeds 16.9 Billion Won
The trading value in the domestic exchange gold market has reached an all-time high. As economic uncertainty grows due to the Middle East crisis, preference for gold, traditionally considered a safe asset, appears to have increased.
According to the Korea Exchange on the 20th, the average daily trading value of gold in the domestic market from the beginning of April to the 19th reached 16.91 billion KRW. This is the highest figure since the KRX gold market opened on March 24, 2014. Compared to the previous month’s average daily trading value in March (6.86 billion KRW), it is 2.4 times higher.
The trading volume also surged vertically. The average daily trading volume this month was 160,895 grams, about twice the previous month’s (74,137 grams).
By item, the average daily trading value of 1kg gold spot this month was 16.16 billion KRW, and mini gold 100g traded about 750 million KRW worth.
With the delay in the timing of the U.S. Federal Reserve’s (Fed) interest rate cuts and the escalation of military conflicts in the Middle East such as Hamas-Israel and Iran-Israel, global interest in gold, classified as a safe asset, is rising.
The international gold price has been fluctuating while repeatedly hitting historic highs. According to Investing.com, gold futures (6-month contracts) hovered around 2,000 USD per troy ounce from November last year to February this year, then jumped to 2,254.80 USD at the end of March, rising further to 2,374.10 USD as of the 12th of this month. On the 15th, it surpassed the 2,400 USD mark, reaching 2,400.70 USD.
However, in the long term, the upward trend is expected to slow down as China’s gold demand declines. Jung Sung-jin, Deputy Head of KB Kookmin Bank Gangnam Star PB Center, said, “Although gold prices have risen, wealthy investors tend to view gold more as a means for inheritance and gifting rather than an immediate investment target. While there are forecasts that prices could rise to 3,000 USD, since the current level is already a historic high, I believe caution is necessary for new investments.”
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