Gold and Chip ETFs Surge on Safe Haven Demand

Gold and SK hynix ETFs have surged in recent days as investors sought safe havens and exposure to chip stocks. According to data from the Korea Exchange, the HANARO Global Gold Mining Companies ETF rose by nearly 12% between August 18th and 21st, outperforming other domestically listed ETFs during this period. This rally came amid concerns over deteriorating fiscal conditions in major economies and continued central-bank gold purchases.

The gold-mining industry's profit margins expanded sharply as gold prices rose 49.4% in the first quarter, while all-in sustaining costs (AISC) for gold miners increased by 16.2%. Central banks' net gold purchases totaled 288.9 metric tons in the second quarter, up 62% from the same period a year earlier. Analysts attribute this trend to rising risk premiums stemming from fiscal uncertainty, rather than expectations of stronger economic growth.

Market experts expect central banks' efforts to reduce their reliance on the dollar to continue over the medium to long term, which could push gold prices higher. However, geopolitical risks and uncertainty over monetary policy remain potential headwinds for gold investors.