Korean Investors Flock Back to Gold Amid Rebound

Gold prices have rebounded in South Korea after hitting an all-time high earlier this year. This has led to increased investor activity, particularly in financial products that track gold prices and offer profits.

The ACE KRX Gold Spot ETF, operated by Korea Investment Trust Management, saw its total net assets reach 4.2 trillion won as of August 20th. Gold prices have risen by about 200 billion won since the beginning of this month, when they hit a low of 3.82 trillion won on August 3rd.

Investors are also buying physical gold, with individual investors net-purchasing all ACE KRX gold in kind during the previous trading day of this month. The average daily purchase amount was 3.4 billion won.

Analysts predict that gold prices will continue to rise due to extreme undervaluation and potential interest rate hikes. Some experts, like Hong Sung-ki from LS Securities, believe that deteriorating US employment indicators may lead to higher gold prices.