Gold ETFs Soar as Gold Prices Continue Record-Breaking Rally

Gold ETFs Lead Monthly Returns
Surging Gold Prices Set New Records Day After Day
Upward Trend Expected to Continue for the Time Being

As gold prices continue to break record highs day after day, gold exchange-traded funds (ETFs) are also showing strong performance. There are even projections that gold prices could approach $4,000 per ounce by the end of the year, leading to expectations that the strength of gold ETFs will continue.

According to the Korea Exchange on September 10, ACE Gold Futures Leverage (Synthetic H) has risen by 13.22% so far this month, recording the second-highest return among all ETFs. HANARO Global Gold Mining Companies followed with a 10.16% increase, while ACE KRX Gold Spot rose 8.84%, TIGER KRX Gold Spot 8.56%, SOL International Gold 6.84%, TIGER Gold and Silver Futures (H) 6.49%, KODEX Gold Active 6.38%, and KODEX Gold Futures (H) 6.07%. Overall, gold ETFs have posted high returns.

This strong performance of gold ETFs has been driven by the recent surge in gold prices. On September 8 (local time), the spot price of gold on the New York Mercantile Exchange closed at $3,632.51 per troy ounce (about 31.1g per ounce), up 1.2%. During trading, it climbed as high as $3,646.29, setting a new all-time high. On the same day, the December gold futures price rose 0.7% to $3,680.30 per ounce. International gold prices surpassed $3,500 for the first time on September 1, and within just one week, the spot price exceeded $3,600. Since the beginning of this year, gold prices have risen by 37%.

Ha Geonhyeong, a researcher at Shinhan Investment & Securities, analyzed, "The upward trend in gold prices is unstoppable. After reaching an all-time high in April, the rally resumed in late August, just four months later, and in less than a month, gold prices have risen more than 7%, setting new records almost every day."

The dovish stance of U.S. monetary policy is supporting the rise in gold prices. Hwang Byungjin, a researcher at NH Investment & Securities, explained, "Since the fourth quarter of 2023, the precious metals sector has been in a strong cycle, as the U.S. Federal Reserve's monetary policy easing (interest rate cuts) has maintained the appeal of gold as a representative safe-haven and inflation-hedge asset." He added, "The Federal Reserve's expected monetary policy easing over the next 12 months will continue to support the investment appeal of gold as both a safe-haven and inflation-hedge asset."

In addition, continued gold purchases by major central banks and investment demand centered on exchange-traded products (ETPs) such as ETFs are cited as factors driving up gold prices. Researcher Ha said, "There are structural factors behind the strong gold prices, starting with the wave of gold purchases by major central banks. The net annual increase in central bank gold holdings, which averaged only 130 tons from 2015 to 2019, has expanded to an average of 260 tons per year from 2022 to the first half of 2025." He added, "In addition to the increase in central bank gold holdings, gold purchases through ETFs have contributed to record-high gold prices. The reason gold purchases through ETFs, which were limited until last year, have become active this year is due to economic and policy uncertainties."

With the upward trend in gold prices continuing, there are forecasts that gold could reach $4,000 by year-end. Researcher Ha predicted, "Unless the factors currently driving gold prices-such as concerns about a U.S. economic slowdown, upward pressure on prices due to tariffs, and fiscal risks-disappear, the upward trend in gold prices will continue. If the current economic and financial environment persists, gold prices could rise to $4,000 per ounce by the end of this year."

NH Investment & Securities has also raised its forecast range for gold prices this year. Researcher Hwang said, "We have raised our forecast range for gold prices for the remainder of this year to $3,400-$3,800, and we are maintaining our target of $4,000 through the first half of next year." He added, "Amid expectations for Federal Reserve monetary policy easing, the outlook for record-high gold prices remains valid, and the strong gold price cycle will likely end once the Federal Reserve signals a shift back to tightening policy."

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