The domestic gold transaction amount has increased by 4.4 times compared to last year. Since the inauguration of the Trump administration in the United States, the uncertainty of the global economy has increased, leading to a surge in investment demand for gold, which is considered a safe asset.
According to the Korea Exchange on the 20th, the average daily transaction value in the gold spot market from the beginning of this year until the 18th of this month was 50.916 billion won. This is an increase of 341.85% compared to last year's average daily transaction value of 11.523 billion won.
As of December last year, the domestic gold transaction amount was only 19.443 billion won on average per day, which was less than 20 billion won. However, in January of this year, it increased to 25.092 billion won, and in February, it surged to 80.913 billion won. In March, it recorded 51.742 billion won, and in April, it was 40.086 billion won.
Meanwhile, the average daily transaction value in the domestic stock market decreased from 19.135 trillion won last year to 18.477 trillion won this year. The trend of investment demand shifting from risky assets to safe assets has become stronger.
On the New York Mercantile Exchange, the June futures price for gold recorded $3,328.40 per ounce on the 17th (local time). The previous day, it had set a record high at $3,346.40 per ounce. This is about 26% higher than the price at the end of last year ($2,641 per ounce).
The price of gold in the spot market also surged. The price of gold per gram rose from 127,850 won at the end of last year to 152,260 won on the 18th of this month.
The phenomenon of investment demand being concentrated in gold is interpreted as being related to the inauguration of the Trump administration. The U.S. government has imposed tariffs on specific items such as automobiles and steel, as well as on individual tariff cards per country, raising concerns that the U.S. economy may fall into stagflation (a period of stagnant economic growth accompanied by inflation).
The financial investment industry anticipates that the rise in gold prices will continue as uncertainty in the global economy increases. Lee Young-hoon, a researcher at Samsung Securities, noted, "At a time when the uncertainty of U.S. policy is becoming prominent, it has been observed that gold is recognized as a safer asset than government bonds." He also explained, "When gold prices show weakness due to shocks in the financial markets, that is an effective investment timing."