Korean Retail Investors Shift to Net Gold Buyers Amid Price Rebound

Korean retail investors have turned net gold buyers for the first time in four months, buying a net 133 billion won ($97 million) worth of gold on the KRX gold market from the start of this month through the 14th.

This shift follows recent rebounds in international gold prices, which had been falling. Oil prices and interest rates have decreased due to US President Donald Trump withdrawing a plan for a large-scale attack on Iran and progress in negotiations over reopening the Strait of Hormuz.

The Federal Reserve's reduced expectations of raising rates also contributed to the increase in gold prices. Central banks' net gold purchases rose to 288 tonnes in the second quarter, with Poland, China, and Kazakhstan leading the buying, according to the World Gold Council.

Analysts expect further declines in gold prices to be limited. Choi Ye-chan, an analyst at Sangsangin Securities, said that the end of the correction in gold prices is in sight, and gold prices could rise to around $5,000 per troy ounce by year-end.