Gold Prices Plummet, Causing Investors to Take Hit

The price of gold has been falling this year after soaring for years, causing significant losses for many investors. According to data from Kookmin, Shinhan, and Woori Bank, the balance of gold banking at these institutions dropped by over 31% in September compared to January, reaching KRW 1.6714 trillion.

This decline is attributed to a combination of factors, including the rise in global interest rates and the U.S. tightening moves, which have put pressure on gold prices. The spot gold price closed at 182,940 won per gram on the KRX gold market in September, down 27.7% from January.

While some analysts view this as an opportunity to buy low-priced gold, others advise caution due to the uncertain economic environment and potential risks of further price drops. Goldman Sachs recently maintained its gold price forecast at $5400 an ounce by the end of 2027, which is 26% higher than the current spot price.