After soaring nearly 17 percent in 2019, the gold price on South Korea’s bourse is expected to prolong its winning streak throughout 2020, reflecting the market’s preference for risk-free assets amid persistent volatility, local experts said Sunday.
According to Daishin Securities, the wholesale price of gold on Korea Gold Exchange closed at 60,670 won ($52.30) per gram Saturday, up 10,400 won, or 17.14 percent, from the end of 2018.
The popularity of gold as an investment is seen as reflecting the growing preference for relatively risk-free assets amid uncertainties -- the ongoing US-China trade conflict and the Korea-Japan tension -- and the consequently weakened investor sentiment, officials suggested.
“Until we break free from low growth and low price economy, gold will remain a key factor in risk-free investment portfolio throughout next year,” said Kim So-hyun, an analyst at the brokerage.
Following the strong gold market was the Kodex 200, the country’s first domestic exchange-traded fund, which has marked its second-highest earning rate, reaching 13.18 percent in the given period.
Seoul’s benchmark Kospi has recorded the solid return rate, surging 7.69 percent in the second half of 2019. Meanwhile, the second-tier Kosdaq bourse declined, marking minus 3.49 percent, in the given period.
By Jie Ye-eun (email@example.com