Bank of Korea Resumes Gold Investment After 13 Years
Signs of slowing in the U.S. labor market are lifting the value of gold, a safe-haven asset, once again. With the likelihood of an interest-rate hike diminishing and uncertainty in the artificial intelligence (AI) sector adding to the picture, gold-related investment products, which had been on a do
Recent signs of a slowdown in the U.S. labor market are driving up the value of gold, a safe-haven asset. Gold-related investment products, which had been on a downward trend, are now rebounding. Domestic gold-related exchange-traded funds (ETFs) have seen a sharp increase in returns over the past week, with HANARO Global Gold Mining Companies leading the pack at 19.23% return.
Gold futures and gold spot investments have also risen significantly. The surge in gold prices was triggered by U.S. employment data showing a sharp decline in July's nonfarm payrolls. This led to doubts about a September interest rate hike by the U.S. Federal Reserve. Gold prices have since surged, with December gold futures reaching $4,450 per ounce.
Central banks, such as the People's Bank of China, continue to increase their gold holdings, diversifying away from the dollar. The Bank of Korea has resumed gold-related investment after a 13-year hiatus, marking a shift in its asset management strategy.
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