Gold prices plunge more than 5.7% in a day..Possible rebound after short-term correction
Summary
- Reported that international gold prices plunged more than 5.7% in a day.
- Stated that easing U.S.-China trade tensions, strong performance by U.S. companies, and the end of India's Diwali festival affected gold investment sentiment.
- Experts said gold prices will pass through a short-term correction and that long-term upward factors are greater.
Gold prices plunge more than 5.7% in a day
Rebound likely after short-term correction
International gold prices, which had been on a record-high run, plunged more than 5% on the 21st (local time).
It is the largest decline since August 2020, during the pandemic.
On the 21st (local time), U.S. market spot gold was $4,115.26 per ounce (about 5.89 million won), down 5.5% from the previous session. Also, on the New York Mercantile Exchange, December-delivery U.S. gold futures closed at $4,109.10 per ounce (about 5.88 million won), down 5.7%.
Analysts say that gold prices, which rose more than 25% over the past two months, entered a temporary correction that day. Above all, easing U.S.-China trade tensions and strong third-quarter results from U.S. companies weakened gold investment sentiment, prompting short-term profit-taking.
The end of 'Diwali,' the period of highest gold demand in India, the world's second-largest gold consumer, was also seen as affecting gold prices.
International gold prices have risen more than 60% so far this year. On the 20th, they even hit an all-time high of $4,381.21 per ounce (about 6.27 million won).
Experts said that, from a long-term perspective, factors favoring higher gold prices remain stronger.
Yoon Shin-ae PD dramaniac@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
