South Korea Revives Gold Purchases Amid Rising Geopolitical Risks

The Bank of Korea is set to resume purchasing physical gold after a 13-year hiatus due to rising geopolitical risks and its goal of diversifying its reserves. This significant policy shift in the bank's reserve management comes after a long period of no gold purchases since 2013.

The planned gold purchases will be sourced from domestic production, adding a portion of the gold that would normally be exported to the country's reserves. However, officials note that the amount and timing of the purchases are still undecided.

Rising geopolitical risks played a crucial role in this decision, with many central banks increasing their gold purchases for similar reasons. The Bank of Korea is also considering diversifying the physical locations where its existing gold reserves are stored to reduce potential risks.