ANN/THE KOREA HERALD – Gold trading in South Korea surged this month due to rising tensions in the Middle East, according to data showed yesterday.
The Korea Exchange (KRX) reported a daily trading volume of KRW16.9 billion (USD12.25 million) as of Friday, a significant increase from March’s daily average of KRW6.86 billion. The reading marks a sharp increase from a daily average of KRW6.86 billion for March.Such an increase follows tensions in the Middle East earlier in the month that apparently forced investors to seek safe assets.
As of Friday, gold prices also saw a notable increase, with one-kilogramme gold bars rising by 10.3 per cent and 100-gramme nuggets spiking by 13.4 per cent on average.
The benchmark Korea Composite Stock Price Index, on the other hand, dipped 5.6 per cent over the cited period.
“The instability in the Middle East is expected to remain at a heightened level for the time being, causing fluctuations in global oil prices and prompting investors to avoid risks,” Samsung Securities researcher Yoo Seung-min said.
