SEOUL — The trading volume of gold has seen a significant spike in South Korea this month, driven by escalating tensions in the Middle East, according to data released on Saturday. The Korea Exchange (KRX) reported that the daily trading volume reached 16.9 billion won (approximately US$12.25 million) as of Friday, marking a considerable rise from the March daily average of 6.86 billion won.
According to Yonhap News Agency, the increase in gold trading is a reaction to the recent military confrontations between Iran and Israel, with Iran initiating drone and missile attacks earlier in the month and Israel responding with retaliatory strikes. This situation has led investors to seek safer investment options, notably precious metals. As a result, the price of a 1-kilogram gold bar increased by 10.3 percent on-month, while 100-gram gold nuggets saw a 13.4 percent rise. In contrast, the benchmark Korea Composite Stock Price Index (KOSPI) fell by 5.6 percent during the same period. Yoo Seung-min, a researcher at Samsung Securities, noted that the instability in the Middle East is likely to continue, affecting global oil prices and investor behavior towards risk.