International Gold Spot Price Hits All-Time High
Domestic Pure Gold Closes at 130,520 Won per Gram on the 1st
As the preference for safe assets increased due to the threat of tariffs from the United States, international gold prices reached an all-time high, pushing the price of a domestic pure gold one-don (3.75g) dol ring up to 600,000 won.
Pure gold stone ring. Photo by Asia Economy DB
According to the Korea Exchange's international gold price trend on the 1st, the closing price per gram of pure gold on the previous day was 130,520 won. This is a 2.16% (2,760 won) increase compared to 127,760 won on January 24, the previous trading day. Compared to the price of 87,280 won on January 31 last year, it surged by 49.54% (43,240 won).
Converted to one don, this is about 490,000 won. When purchasing physical gold, a 10% VAT is applied, making it 540,000 won, and with additional crafting fees, the price of a dol ring reaches close to 600,000 won. As the price of a one-don gold ring has risen to a level that makes it difficult to gift casually, recently, half-don gold rings, 1g mini gold rings, gold spoons, and paper dol rings containing 0.2g gold bars have been replacing the one-don gold ring as dol gifts.
The number of gold passbook (Gold Banking) accounts is also steadily increasing. As of the 24th of last month, the number of Gold Banking accounts at commercial banks handling gold passbooks such as KB Kookmin, Shinhan, and Woori Bank was 274,976. This is an increase of more than 2,800 accounts this month compared to 272,125 accounts at the end of last year. Also, the number rose by 23,000 accounts in one year from 250,945 at the end of 2023.
Meanwhile, on the 30th of last month (local time), the spot price of gold in the international commodity market rose to $2,798.59 per ounce at one point during trading. This is a 1.4% increase from the previous session, breaking the record high set in October last year. Along with this, the spot price of silver also rose 2.5% to $31.58 per ounce.
The reason for the rise in gold prices is that U.S. President Donald Trump repeatedly announced tariffs on Mexico, Canada, and others, increasing trade tensions and inflation concerns, which boosted demand for safe assets. Regarding this, Bloomberg analyzed, "After President Trump's election in last November's presidential election, investors flocked to risk assets linked to Trump's pro-growth agenda for a while, but recently, due to repeated tariff threats, they are turning their attention back to safe assets."
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