Gold Prices Surge Amid Easing Interest-Rate Hike Concerns and AI Uncertainty

The value of gold has rebounded in recent weeks due to concerns over interest-rate hikes easing and uncertainty in the AI sector. According to Koscom ETF Check, domestic gold-related exchange-traded funds (ETFs) have seen a sharp increase in returns over the past week.

HANARO Global Gold Mining Companies posted a return of 19.23%, the strongest performance among the group. The product invests in global gold mining companies including Newmont and Agnico Eagle Mines, whose profits tend to increase more sharply when gold prices rise due to their high proportion of fixed costs.

The decisive trigger for the rebound was U.S. employment data that came in far below expectations. The number of U.S. nonfarm payrolls for July fell by 23,000, sharply missing the market forecast of an increase of 80,000. As a result, the probability of a September rate hike fell to 43.9% from 57%, while the probability of a hold rose to 56.1%

International gold prices responded immediately, with the price of December gold futures surging from $4,090.50 per ounce on Aug. 3 to around $4,450 as of Aug. 11. Spot gold prices also rose about 8.3% over the same period.