International Gold Prices Hit Record High, Surpass $3,400 per Ounce

Goldman Sachs: "$4,000 Possible Next Year"
Trump's Pressure on Powell to Resign Also Plays a Role

Amid ongoing global economic uncertainty caused by U.S. President Donald Trump's tariff policies, international gold prices have once again reached an all-time high.

According to Bloomberg News on the 21st (local time), June gold futures surged 2.27% from the previous session to $3,404 per ounce as of 3:45 p.m. Korea time, surpassing the $3,400 mark for the first time ever. Spot gold prices also set a new record during the session at $3,393.34, and as of 3:58 p.m. Korea time, were trading at $3,391.96, up 1.96% from the previous session.

As gold prices continue to soar, an employee is showing a gold bar sample to a customer at the Jongno main branch of Korea Gold Exchange in Jongno-gu, Seoul. Photo by Kang Jinhyung

Spot gold prices have risen more than 29% so far this year, and have climbed over 14% from their recent 10-day low. Factors driving the rise in gold prices include concerns over a U.S. economic downturn due to tariff policies, a weakening dollar and the sell-off of dollar-denominated assets such as U.S. Treasury bonds, central banks around the world accumulating gold, and increased inflows into gold exchange-traded funds (ETFs). The holdings of gold ETFs have risen for 12 consecutive weeks, the longest streak since 2022.

Goldman Sachs has forecast that gold prices could reach $4,000 per ounce by the middle of next year. Kyle Rodda, an analyst at Capital.com, identified $3,500 as a key price level to watch, but noted that prices are unlikely to reach that level immediately.

Some analysts say that President Trump's recent pressure on Jerome Powell, the chair of the U.S. Federal Reserve (Fed), to resign also influenced market movements on this day. On the 17th, President Trump publicly pressured Powell by calling for a rate cut and saying, "If I want him to resign, he will step down very quickly." Kevin Hassett, chairman of the White House National Economic Council (NEC), also said on the 18th, "President Trump and his team will continue to review the issue (of possible dismissal)."

Meanwhile, gold trading has also surged recently in South Korea. According to the Korea Exchange, as of the 18th of this year, the average daily trading value in the domestic spot gold market reached 50.9 billion won. This figure is 4.4 times, or about 342%, higher than the same period last year. The average daily trading value of gold jumped from 19.4 billion won in December last year to 25 billion won in January this year, and soared to the 80 billion won range in February. Trading volume also increased significantly. The average daily gold trading volume this year is 353 kg, a 241% increase from last year's average of 103 kg.