"I should have bought it sooner" … Gold prices hit record highs

The international price of gold has surpassed $5,000 per ounce for the first time ever. This is attributed to the influx of investment funds into gold and silver, the representative safe-haven assets, amidst growing geopolitical uncertainty. Amidst growing risk aversion in global financial markets, precious metal prices continue to surge.

 

Gold prices surpass $5,000 per ounce, reaching a new all-time high.

According to the Comex, gold futures for February delivery reached a record high of $5,028.2 per ounce, up $48.50 from the previous trading day. This marks the first time gold prices have surpassed $5,000. Gold futures prices have more than doubled in the past two years and have continued to rise since breaking the $4,000 mark in October of last year.

 

Silver prices also soar, surpassing $100 for the first time ever.

Silver prices also showed a sharp upward trend. The price of silver futures for March delivery hit $101.33 per ounce the previous day, surpassing the $100 mark for the first time. International silver prices surged more than 150% last year, and volatility has increased significantly this year, with prices rising by over 40% in less than a month.

 

Geopolitical instability and Trump's actions have triggered an influx.

Market analysts attribute the surge in gold and silver prices to deepening geopolitical instability and growing macroeconomic uncertainty. Gold and silver are typically considered safe-haven assets, with demand rising and prices rising in response to international instability, such as war and conflict. The recent turmoil surrounding US President Donald Trump's foreign policy, including the Greenland conflict and the attack on Venezuela, has dampened investor sentiment, prompting an influx of funds into the precious metals market.

 

Experts: "The Essential Portfolio in an Age of Uncertainty"

“In times of extreme economic and political uncertainty, gold is becoming an essential part of strategic portfolios as a haven and diversifier,” independent metals trader Tai Wong told Reuters.

 

Concerns about central bank independence and expectations of interest rate cuts

Expectations surrounding monetary policy are also supporting the rise in gold prices. Concerns are rising that President Trump's pressure on the Federal Reserve (Fed) could weaken the central bank's independence. Meanwhile, growing expectations that the incoming Fed chairman will be proactive in cutting interest rates have fueled gold demand. Gold, with its limited supply, tends to perform relatively well when concerns about currency devaluation grow or interest rates are lowered.

 

Domestic gold banking balance exceeds 2 trillion won.

The surge in gold prices is also impacting the domestic financial market. With gold prices reaching record highs, the balance of gold banking accounts at domestic commercial banks has surpassed 2 trillion won for the first time. As of the 21st, the balance of gold banking accounts at the three banks offering gold banking products—KB Kookmin Bank, Shinhan Bank, and Woori Bank—was recorded at 2.1298 trillion won. This figure, surpassing 1 trillion won for the first time in late March last year, surpassed 2 trillion won in just ten months, reflecting the growing demand for gold investment.