Gold Prices Keep Retracting in South Korea

Published December 7th, 2020 - 02:00 GMT
Gold Prices Keep Retracting in South Korea
International prices of the yellow metal have also dropped to the $1,800 range per ounce from the record high of $2,075 in August. (Shutterstock)
Gold prices in South Korea have been on the skids in recent months amid a soaring local stock market, data showed Monday.

 

A gram of gold changed hands at 64,320 won ($59.23) on the domestic market Friday, down 0.80 percent from the previous session, according to the Korea Exchange, South Korean News Agency (Yonhap) reported.

The closing prices were down 19.7 percent from an all-time high of 80,100 won per gram recorded on July 28 this year.

International prices of the yellow metal have also dropped to the $1,800 range per ounce from the record high of $2,075 in August.

Prices of gold, a key safe-haven asset, spiked in the first half of the year due to jitters over an economic recession stemming from the coronavirus outbreak and greater market volatility.

But gold prices have recently been on the decline on expectations for an economic recovery and positive news on vaccine development.

Amid those positive leads, the South Korean stock market has been on a roll. The benchmark Korea Composite Stock Price Index (KOSPI) hit a fresh all-time high of 2,731.45 on Friday, backed by strong advances by tech and bio heavyweights and massive foreign buying.

Falling gold prices have plunged returns of gold funds into negative territory. The three-month average return of 12 local gold funds with assets of 1 billion won ($921,000) or more stood at minus 10.87 percent as of Thursday, according to market tracker FnGuide.


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