International gold prices have been on a wild ride. After setting a record high in early 2026, the metal has kept grabbing attention — searches for “why is gold rising” have spiked. In Korea, gold prices have followed suit, climbing well into record territory in local currency terms too.
How High Has Gold Actually Gone?
Gold hit an all-time high in late January 2026, driven by safe-haven demand and sustained central bank buying. In March, escalating tension around the Strait of Hormuz — following U.S.-Israeli military action related to Iran — pushed prices briefly above $5,000 an ounce. That rally wasn’t a straight line: a rumor of a large gold sale by Russia triggered a sharp, if temporary, pullback around the same period, a reminder that gold can move on geopolitical headlines in both directions.
By June, COMEX gold futures were trading around $4,500 an ounce, with spot gold near $4,400. Domestically, prices have held in a similarly elevated range.
Three Forces Behind the Rally
1. Central banks keep buying. According to World Gold Council surveys, a large share of central banks worldwide say they plan to keep expanding their gold reserves. Emerging-market central banks — China, India, and Turkey among them — have been steadily rotating away from dollar assets into gold.
2. Geopolitical risk keeps driving safe-haven demand. Renewed instability in the Middle East, particularly around the Strait of Hormuz, has repeatedly sent money flowing into gold each time tensions flare.
3. Dollar weakness and rate-cut expectations. As expectations build for lower U.S. interest rates, the opportunity cost of holding a non-yielding asset like gold falls, making it relatively more attractive. Much of the recent rebound has been attributed to this combination of a softer dollar and rate-cut hopes.
Common Questions
Why does Korean gold look more expensive than the international price? Domestic gold prices are set by combining the international spot price with the USD/KRW exchange rate and a 10% value-added tax. Even if the international price stays flat, a weaker won can push local gold prices higher on its own.
Is it still worth buying gold now? Many analysts still see a place for gold in a long-term, diversified portfolio. But with prices already near record territory, short-term volatility is real — the March pullback on Russia-sale rumors is a good example of how quickly sentiment can turn on a single headline.
What are the ways to invest in gold? Options range from physical gold bars to gold savings accounts, the KRX gold market, and gold-related ETFs — each with different minimum investment sizes, tax treatment, and fee structures. The right choice depends on your goals and time horizon.
Strategist View
Gold hit its all-time high of $5,781.80 an ounce on January 29, then fell roughly 30% over the following six months, bottoming at $4,015.60 on June 30.
The rebound that began near the $4,000 level last month looks like more than simple bargain-hunting, according to some technical analysts. It resembles a classic reversion move — narrowing the gap that opened up between price and its moving averages during the sharp decline, after the drop pushed the price unusually far below those averages. If that pattern holds, there may be room for further gains into next week.
newsroom
Commodities Desk · Commodities
