International Gold Price Surges Most in 4 Months... Approaching $2000 per Ounce

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] International gold prices recorded $1,998.70, marking the largest increase in four months. The rise in gold prices is attributed to weak economic indicators, a weaker dollar, and news of Warren Buffett's investment in a gold mining company.

On the 17th (local time) at the New York Mercantile Exchange, December delivery gold closed at $1,998.70 per troy ounce, up 2.5% ($48.90). According to financial information firm FactSet, this is the largest gain since April 22.

Gold prices, which had recorded a weekly decline for the first time in 10 weeks last week, approached the $2,000 per ounce mark again, mainly due to U.S. Treasury yields and the weaker dollar.

Recently, rising U.S. Treasury yields and a recovering dollar value had caused investment demand that had been focused on gold to diversify into other safe-haven assets, which was the main reason for the decline in gold prices.

However, on this day, the 10-year U.S. Treasury yield noticeably dropped to 0.676% from 0.708% the previous trading day. The Dollar Index, which shows the value of the dollar against major currencies, also fell by 0.1%.

In particular, the revelation that Berkshire Hathaway, led by investment genius Warren Buffett, purchased a large amount of shares in Barrick Gold, the world's second-largest gold mining company, in the second quarter reignited the 'gold rush.'

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