Korea Gold Exchange, Gold Trading Volume Surges Due to COVID-19 Crisis

Increased Preference for Safe Assets
Growing Expectations for ITCEN Group's Performance Improvement

[Asia Economy Reporter Lim Jeong-su] Korea Gold Exchange, an affiliate of ITCEN Group, announced on the 6th that the trading volume surged as gold prices showed strength amid the COVID-19 pandemic.

According to Korea Gold Exchange, the cumulative trading volume from the beginning of this year to February reached 27,243 transactions, a 192% increase compared to 14,149 transactions during the same period last year. The preference for safe-haven assets strengthened due to the COVID-19 situation, causing gold prices to rise and related trading volume to increase significantly.

Over the past 10 years, the average international gold price, which was only $1,312 per ounce, has now risen to around $1,640. This corresponds to 91% of the peak price of $1,800 in 2011. The preference for safe-haven assets continued due to the decline in stock markets such as the US Dow Jones Index, falling bond yields, and the Federal Reserve's surprise interest rate cuts.

Silver bar sales also increased significantly. Silver bar sales, which were only 8.7 tons in 2018, recorded more than a 420% increase last year, reaching 36.7 tons. It is analyzed that silver bars are steadily growing due to the strong perception that they are undervalued compared to gold and have high potential for profit realization.

Song Jong-gil, Executive Director of Korea Gold Exchange, said, "The gold price forecast was revised upward earlier this year, and the gold market price is expected to maintain a continuous upward trend." He added, "As the preference for safe-haven assets continues and trading volume increases, it is expected to have a positive impact on the performance improvement of ITCEN, including Korea Gold Exchange."

This content was produced with the assistance of AI translation services.