South Korean Investors Flock Back to Gold as Prices Rebound

Gold banking balances in South Korea have risen for the first time in seven months due to rebounding prices and the Bank of Korea's resumption of gold purchases. Retail investors, who had been net sellers since May, turned into net buyers this month, purchasing a total of 133 billion won worth of gold on the KRX gold market.

Gold prices have recovered from their lows, with international prices climbing above $4,400 per troy ounce this month. This has boosted demand for safe-haven assets like gold, and investors are returning to the metal in search of lower prices.

Banks such as KB Kookmin Bank and Woori Bank are making gold investing more accessible by cutting margins on gold bar sales and offering smaller-sized products. The Bank of Korea's return to gold investment has also supported retail sentiment, with the central bank buying over 350 billion won worth of gold exchange-traded funds in the second quarter.