Domestic Investors Increase Gold ETF Purchases Despite Gold Price Decline
Amid a sharp drop in global gold prices, Korean investors have actively engaged in bargain hunting, increasing their purchases of spot gold ETFs such as 'ACE KRX Gold Spot' and 'TIGER KRX Gold Spot.' According to data from the Korea Exchange, net purchases of these two ETFs amounted to KRW 72.08 billion from June 18 to 24. The gold price collapse is attributed to multiple factors, including escalating geopolitical risks in the Middle East, a strong US dollar, and shifts in the US Federal Reserve’s monetary policy.
As a result of the falling gold prices, the performance yields of gold-related ETFs have also declined significantly. Factors such as rising oil prices, persistent interest rate levels, and a strong dollar have eroded the attractiveness of holding gold. Nonetheless, analysts maintain that gold retains its long-term investment value. In a globally volatile economic environment, gold is still expected to serve as a reliable safe-haven asset.
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