Gold Prices Plunge Nearly 10% in One Month

Gold prices in South Korea and globally have plummeted nearly 10% over the past month, reaching their lowest levels in seven weeks. The KRX gold market saw a decline of ₩19,070 (approximately $14) per gram in just one month, with 99.99% pure gold closing at ₩183,940 (approximately $140). This represents a 9.4% drop from the previous month's closing price of ₩203,010 (approximately $150).

An investor who put ₩10 million (approximately $7,400) into South Korean gold a month ago would now see a simple valuation of roughly ₩9.06 million (approximately $6,700), resulting in a loss of about ₩940,000 (approximately $700). International spot gold also fell to $4,110.55 per ounce intraday, posting a decline of over 4%, and reaching its lowest price level since the 5th of last month.

The combination of potential additional U.S. interest rate hikes, a stronger dollar, and rising Treasury yields has pressured gold prices lower. Société Générale warned that downward momentum remains intact, with potential for short-term declines, but maintains a long-term outlook of $5,250 by 2027.