Gold Prices Plummet 10% in One Month Amid Rising U.S. Interest Rates
Gold prices have taken a significant hit in recent weeks, falling nearly 10% in just one month. According to data from the Korea Exchange (KRX), the closing price of 99.99% pure gold in the KRX gold market was 183,940 won per gram as of the previous day, down 19,070 won (9.4%) from the closing price of 203,010 won on August 28th.
The decline in gold prices is also evident in the international market, where spot gold prices fell to $4,110.55 an ounce during the day on August 28th, a level not seen since July 5th. The strong dollar and rising U.S. Treasury yields are being cited as major factors contributing to the drop.
An official from the financial investment industry notes that even if international gold prices rebound, the rise in domestic gold prices could be limited if the won strengthens, emphasizing the need to consider interest rates and exchange rate trends when making investment decisions.