Gold draws renewed interest as Korean stocks tumble after US midterms
Gold investment has drawn renewed interest in Korea as international bullion prices rebound while domestic stocks sold off sharply following the Democrats’ capture of both chambers of Congress in the U.S. midterm elections. The election outcome raised expectations that Congress could curb President Donald Trump’s plans to expand fiscal spending, putting downward pressure on U.S. Treasury yields…
Korean investors are showing renewed interest in gold following a sharp decline in domestic stock prices, according to reports from the Korea Exchange. The event occurred in the wake of the United States' recent midterm elections, during which Democrats secured control of both chambers of Congress. This shift in political power raised concerns that President Donald Trump's plans to increase fiscal spending might be limited, leading to a downward trend in U.S. Treasury yields and the value of the dollar.
As a result, gold, which does not generate interest, has become more appealing to investors due to the lower yields. Additionally, a weaker dollar makes gold more affordable for buyers in different currencies. On Friday, the domestic spot price of gold closed at 176,690 won, or approximately $130 per gram, indicating a slight decrease from the previous session. However, this price still represents a 4.53 percent increase compared to November 2nd.
The gold market experienced a temporary boost on Thursday, when it reached a high of 178,460 won per gram, marking a 5.58 percent rise from the November 2nd level. Nevertheless, gold's performance was overshadowed by a significant decline in the Korean stock market, with the KOSPI falling 6.02 percent and the Kosdaq sinking 5.03 percent on Friday. These losses marked an extension of the market's previous losses of 5.28 percent and 5.11 percent on Thursday.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
