Seoul, South Korea – The recent surge in gold trading in South Korea has reached unprecedented levels, with daily transaction value hitting an all-time high of 108.8 billion won (approximately $81.5 million USD) on May 5th. This surge comes amidst growing concerns about a potential trade war sparked by US President Donald Trump's recent tariff impositions on goods from Canada, Mexico, and China.
The Korea Exchange reported that this figure marks the highest daily gold transaction value since the exchange's gold market opened in March 2014. The previous record was set on October 23rd of the previous year, with a transaction value of 50 billion won.
This surge in gold trading reflects investors' growing appetite for safe-haven assets as uncertainty grips the global financial markets. The escalating trade tensions have led to significant volatility in stock markets and currency exchange rates, prompting investors to seek refuge in gold, a traditional hedge against economic turmoil.
The price of gold has also seen a significant increase, with a 4.58% jump on May 5th, the fourth-highest daily increase since the market's opening. This surge in both transaction volume and gold prices underscores the growing anxiety among investors about the potential fallout from a full-blown trade war.
Financial analysts attribute this trend to the increasing likelihood of a global trade war, which could have severe repercussions for the global economy. The uncertainty surrounding the outcome of these trade disputes has led investors to flock to gold, driving up demand and prices.
This phenomenon is not unique to South Korea. Global gold prices have also been on the rise, reflecting the widespread concern about the potential economic fallout from escalating trade tensions. As the trade dispute continues to unfold, it remains to be seen whether this trend will persist or if investors will eventually return to other asset classes.
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