Exceeded $2,700 per ounce… 31%↑ this year
The spot price of gold exceeded $2,700 (about 3,703,000 won) per ounce for the first time in history. There is an analysis that global investors are flocking to safe assets as tensions in the Middle East region rise ahead of the U.S. presidential election.
According to Bloomberg on the 18th, the international gold price once reached an all-time high of $2,707.84 per ounce in the Asian financial market. Spot gold, which was trading at around $2,000 per ounce at the beginning of the year, has risen more than 30% this year.
The recent strong gold price is interpreted as a result of increased investment demand for gold, which is considered a representative safe asset, as geopolitical tensions in the Middle East region increase. The previous day, Israel announced that it had eliminated Yahya Shinwar, the top political leader of the Palestinian armed group Hamas. Israeli Prime Minister Benjamin Netanyahu said in a video message, “The war is not over yet.” As the conflict in the Middle East region enters a new phase, sentiment to buy gold, which is considered a representative safe asset, has increased.
Amid the uncertainty that is still difficult to predict next month’s U.S. presidential election, the U.S. Federal Reserve implemented a ‘big cut’ last month, lowering the benchmark interest rate by 0.5% point, and central banks around the world are starting to buy gold. It is considered a supporting factor. Recently, the London Gold Market Association (LBMA) released the results of an expert survey predicting that the price of gold will exceed $2,900 by October next year. Because gold does not accrue interest, there is a high possibility of its price falling in a high interest rate environment, but it has risen by about 31% this year. This is the second highest increase rate among major raw materials after silver (34%).
Sejong = Reporter Lee Ho [email protected]
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