Gold Prices Plummet Amid Middle East Conflict and Rising Interest Rates

Gold prices have been on the decline after experiencing a rebound in recent months. The Middle East conflict has triggered a rise in oil prices, which in turn has led to increased concerns about inflation and higher interest rates.

The Korea Exchange reported that gold prices in Korea fell by 2.79% to 190,810 won per gram on the 2nd, marking the lowest level since July 5th.

This downturn comes after a surge in gold prices due to expectations of a decrease in the Federal Reserve's interest rate hike. However, with rising oil prices and increased inflation concerns, the market has shifted towards financial assets such as bonds that generate interest.

As global interest rates rose again, gold prices turned downward. Lee Kyung-min, a researcher at Daishin Securities, stated that 'the surge in oil prices has renewed inflation concerns and put upward pressure on interest rates on government bonds in major countries.'