South Korean Retail Investors Flock Back to Gold as Prices Rebound

Retail investors in South Korea are buying gold again after prices rebounded. According to the Korea Exchange, individual investors bought a net 133 billion won ($95 million) worth of gold on the KRX Gold Market between July 1st and July 14th.

This marked their first net buying since May, when they sold a net 524 billion won worth of gold. In June and July, retail investors sold a net 348 billion won and 51 billion won worth of gold respectively.

The renewed appetite for gold comes as international prices have risen sharply. As of July 13th, international gold futures stood at $4,420.40 an ounce, up 9% from $4,049.10 at the end of last month. On the KRX Gold Market, the price of gold (99.99_1kg) rose 13,110 won over the same period, from 187,460 won to 200,570 won per gram.

Analysts are divided on whether gold prices will continue to rise. Some argue that uncertainty persisting in the Middle East and the possibility of a U.S. rate increase could lead to volatility. Others expect continued buying by major central banks and easing rate-hike concerns down the road could put prices back on an upward trend.