Gold Prices Rebound, Sparking Fresh Demand for Safe-Haven Assets

A rebound in gold prices has sparked renewed interest in safe-haven assets. According to recent data, money is flowing into gold banking balances and gold ETFs in South Korea.

The increase in gold investments comes as the U.S. Treasury reviews plans to buy back long-term government bonds, sparking concerns that this could weaken the dollar's value.

Rising net gold purchases by central banks worldwide have also contributed to the growing demand for gold. In the second quarter, central banks bought 288.9 metric tons of gold, a 62% increase from the same period last year.

Banks in South Korea are expanding their gold-related services as they compete for customers. KB Kookmin Bank will begin selling gold bars through its app on September 10, while Hana Bank plans to launch a service that allows non-customers to send physical gold as a gift through a messenger platform.