Korea Rejoins Gold Buying Frenzy Amid Global Resurgence

The Bank of Korea has resumed buying gold after a 13-year break, joining other top banks in bolstering their national reserves. This move follows criticism in 2013 when early purchases faced price drops.

The bank initially bought physical gold but stopped in 2013, missing out on gains of around $7 billion as prices climbed over time. However, it has now shifted to buying small amounts of locally-sourced gold through funds, helping to stabilize prices and prevent big market moves.

This decision comes amidst a significant push by other central banks, which bought 289 tons of gold in the second quarter, their strongest performance on record.