Institutional Investors Eye Gold as Uncertainty Mounts

As predictions regarding economic instability, government policies, and central bank monetary strategies become increasingly difficult, diminishing the stock market's appeal, institutional investors are turning to gold as a risk-hedging instrument.

Middle Eastern conflicts, including potential US-Iran hostilities, have served as a dampening factor on gold prices. President Trump's rhetoric has amplified geopolitical risks, fueling a preference for safe-haven assets. As heightened tensions in the Middle East lead to soaring oil and natural gas prices, inflationary pressures are rapidly increasing across various economic blocs, and this is raising expectations for interest rate hikes by central banks.

Following Federal Reserve Chair Jerome Powell's statement that "rates are currently appropriate," expectations for interest rate cuts have revived, causing U.S. Treasury yields to decline. This decline has provided a backdrop supporting an increase in international gold prices, according to the Korea Gold Exchange.

Gold prices saw a rebound on Tuesday morning, with gold futures trading at $4,553.69 per ounce, up approximately 1% from the previous day. Subsequently, prices rose to $4,606.60 per ounce, a 1.78% increase from the previous day. Silver prices also increased by 4.68% to $73.87 per ounce. According to the Korea Gold Exchange, as of midnight on April 1st, the purchase price for pure gold (24K, 3.75g) was 984,000 won, and the selling price was 826,000 won.