In Just One Day, 56 Billion Won... Where Korean Investors Flocked Amid 'Trump Fear'

Gold Prices Hit Record High... Trading Volume Also 'All-Time High'

KRX Gold Spot at 138,000 Won per 1g

Trading Volume Reaches 55.7 Billion Won 'Record High'

"Preference for Safe Assets, Potential for Further Rise"

Gold prices have soared to an all-time high. As the Donald Trump administration in the U.S. introduced new tariff measures, opening the door to a 'trade war,' those concerned about global economic uncertainty flocked to safe assets.

On the 3rd, in the KRX gold market, gold spot closed at the most expensive price ever at 138,000 won per gram. It rose by 3.60% compared to the previous trading day. This marked the largest daily increase in about 23 months since March 2023 (3.64%).

The trading volume that flocked to gold spot on this day was about 55.7 billion won, the largest since the market opened. Compared to the daily average of the previous month, it was 2.2 times more.

On the same day, in the Singapore futures market, the core gold futures were traded at $2,819.10 per troy ounce. Although it slightly decreased compared to the end of last month when it was traded at $2,845 per troy ounce, it was about 6.2% higher compared to a month ago.

Related exchange-traded products also rose in succession. The 'ACE KRX Gold Spot' exchange-traded fund (ETF) rose by 3.74%. On this day, individual investors net purchased about 10.1 billion won worth of this ETF. The Samsung KRX Gold Spot exchange-traded note (ETN) yielded a 3.05% return.

As economic uncertainty increased due to tariff conflicts originating from the U.S., investments moved to safe assets like gold. U.S. President Donald Trump signed an executive order on the 1st to impose a 25% tariff on U.S. imports from Canada and Mexico starting from the 4th, and an additional 10% tariff on Chinese goods. Canada and Mexico each threatened to take 'retaliatory tariff' measures. China plans to formally challenge the tariffs by filing a complaint against the U.S. with the World Trade Organization (WTO).

Experts believe that this measure has increased uncertainty in the U.S. economy and the international trade landscape. If high tariffs increase trade costs between countries, global trade could shrink. If trade conflicts escalate, some industries might see their existing supply chains disrupted, similar to the first Trump administration. Experts point out that this could slow down economic growth in various countries.

There are also concerns that tariffs on major raw materials like crude oil could raise U.S. prices and spur inflation. This is why trading in gold, a representative inflation hedge asset, has increased.

An asset management company official said, "Typically, a strong dollar is a factor that lowers gold prices, but recently, both the value of the U.S. dollar and gold prices are rising together," adding, "This means the market is leaning towards safe assets." He predicted, "For a while, government officials from the U.S. and other countries are expected to make statements related to high tariffs, which will likely stimulate the preference for safe assets, causing gold prices to continue rising for some time."

Han Kyul Sun, reporter always@hankyung.com