Gold Price Hits Highest in 1 Year 4 Months... 71,390 Won per Gram

[Asia Economy Reporter Song Seung-yoon] Gold prices have reached their highest level in 1 year and 4 months.

According to the Korea Exchange on the 14th, the 1kg gold spot price in the KRX gold market closed at 71,390 KRW per gram, up 1.46% from the previous trading day. This is the highest closing price since October 6, 2020, when it was 71,560 KRW.

The rise in gold prices is analyzed to be related to increased preference for safe-haven assets amid growing fears of an imminent Russian invasion of Ukraine. Generally, gold prices move inversely to risk assets. Until the first half of last year, preference was concentrated on risk assets such as stocks, and gold prices remained relatively weak.

However, since the second half of last year, gold has emerged as a hedging tool, and gold prices have shown strength again. In November last year, the price rose to the 70,000 KRW per gram level for the first time in a year.

Gold prices tend to rise when financial market volatility increases. Accordingly, it recorded an all-time high in early 2020 when concerns about an economic recession grew due to the spread of COVID-19.

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