The Korea Exchange announced on the 3rd that the gold market trading volume as of the end of last month exceeded 74% of the total volume of the previous year. In particular, the proportion of individual transactions was found to be the highest.
Korea Exchange in Yeouido, Seoul. Photo = Reporter Kang Jin-hyung aymsdream@
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The price of gold in the Korea Exchange gold market rose 47% from 86,940 won per gram (g) at the beginning of the year to 127,590 won at the end of last month, breaking a new record high due to the recent rapid rise in exchange rates and overheated investment sentiment for safe assets.
The average daily trading value last month was 23.2 billion won, an increase of 344% compared to the beginning of the year. During the same period, the average daily trading volume jumped 211% to 187 kg (kilograms).
The proportion of transactions by investor was highest for individuals at 43%, followed by institutions (37%) and real business operators (19%). In particular, the number of gold trading accounts opened by individuals at 13 securities firms that are members of the gold market exceeded 1.2 million as of the end of June.
Meanwhile, at the Shanghai Gold Exchange, a representative gold spot market other than the Korea Exchange, the price of the Au99.99 item at the end of last month rose 31% compared to the beginning of the year. During the same period, average daily trading volume decreased by 47%. Also, the price of USD/ons stocks at the Istanbul Exchange at the end of last month rose 37% compared to the beginning of the year. During the same period, average daily trading volume decreased by 20%.
The exchange analyzed that the rise in gold prices continued due to various uncertainties in the global economy, such as expanding geopolitical risks and the prospect of an interest rate cut by the U.S. Federal Reserve (Fed). In addition, the continued increase in geopolitical tensions, such as the escalation of conflict in the Middle East and the prolonged war in Ukraine, stimulated demand for safe assets, and the inflow of investment funds into the gold market increased as a hedge against the decline of the dollar following the Fed’s interest rate cut cycle that began in the second half of the year.
An exchange official said, “As the preference for safe assets continues, participation in the KRX gold market, a major investment destination, is steadily increasing due to the strengthening of gold’s status,” adding, “The Korea Exchange ensures that gold trading is transparent and fair, while allowing financial investment companies and precious metals business operators to participate.” “We plan to strengthen communication with market participants, including general investors, and actively resolve difficulties during transactions.”
Reporter Seunghyung Lee trust@asiae.co.kr
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