South Korea's Central Bank Joins Global Gold Buying Frenzy

Gold has had one of its most turbulent starts to a year in recent history. The precious metal surged past $5,500 per ounce in January before plummeting to $4,100 an ounce by August.

The sharp correction was largely due to the escalation of tensions over the Iran war, which led to rising oil prices and increased expectations that the US Federal Reserve would raise interest rates later this year.

Despite the pullback, gold remains up about 20% for the year, despite trading around 25% below its January peak. Central banks have played a significant role in maintaining price stability through sustained buying, with 288.9 tonnes of gold purchased in the second quarter, a 62% increase from last year.

South Korea's central bank has now joined this trend after a 13-year hiatus, purchasing gold at an average price of $1,629 per ounce in the past.