'Gold Price' Soars... 16.7 Billion in 10 Days 'Flooded into Gold Banking'

167 Billion KRW Flows into Gold Banking in Just 10 Days of the New Year
Gold Prices Soar 34% in a Year, Maintaining a High-Flying Trend
Rising Uncertainties Drive Increased Demand for Gold Investments

Despite the international gold price continuing its high-flying trend, gold banking balances have been increasing day by day. This is interpreted as a result of growing political uncertainties both domestically, such as martial law and impeachment crises, and internationally, including the inauguration of Donald Trump's second administration, fueling expectations that gold prices will continue to rise.

According to the financial sector on the 14th, the gold banking balance of three domestic banks (KB Kookmin, Shinhan, and Woori) stood at 798.9 billion KRW as of the 10th. This means that 16.7 billion KRW of market funds flowed into gold banking within just ten days after the start of the new year.

The gold banking balance steadily increased throughout last year. The gold banking balance on the 10th (798.9 billion KRW) represents an increase of about 40.95% compared to around one year ago, at the end of January 2024 (566.8 billion KRW). The number of gold banking accounts also rose significantly. During the same period, the number of gold banking accounts at the three banks increased from 252,332 to 273,723, showing a rise of over 20,000 accounts.

Gold prices showed a rapid upward trend last year. According to the New York Mercantile Exchange, the international gold price rose to 2,717.4 dollars per troy ounce (T.oz = approximately 31.1g) as of the 10th. This is about a 33.88% increase compared to January 10 last year (2,029.8 dollars).

The background of last year's gold price increase was uncertainty. Geopolitical tensions such as the Russia-Ukraine war and Middle East conflicts expanded, leading central banks worldwide to actively purchase gold instead of dollars. A survey conducted by the World Gold Council at the end of last year targeting central banks in 68 countries showed that 3 out of 10 respondents planned to increase their gold holdings within the next 12 months.

Uncertainty remains this year as well. Domestically, political uncertainty is growing due to the aftermath of martial law and impeachment crises. Internationally, the inauguration of Trump's second administration and the potential imposition of 'universal tariffs' have emerged as the greatest uncertainties for the global economy. Accordingly, central banks worldwide are also poised to continue increasing their gold holdings. Global investment banks such as Bank of America (BOA), JP Morgan, and Citi predict that gold prices will exceed 3,000 dollars per ounce during the year.

A financial sector official explained, "Gold prices are generally influenced by industrial demand and central bank purchasing trends, which are difficult to predict in advance," adding, "It is necessary to approach gold as one of various portfolios, just like other investment assets."

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