Retail investors turn to gold ETFs amid weakening won

A growing number of retail investors are increasing their holdings of gold exchange-traded funds (ETFs), prompted by rising demand for safe-haven assets as the Korean currency weakens and global geopolitical and policy uncertainties intensify, market watchers said Wednesday. The surge coincides with the Korean currency losing ground against the dollar to the 1,480 won-level, despite showing moderate strength over the past few weeks. Many see gold priced in U.S. dollars as a better bet to hedge against currency depreciation and inflation. According to ETF Check operated by KOSCOM, a capital market IT solution service provider, retail investors net purchased 92.3 billion won worth of the ACE KRX Gold Spot ETF over the past month. That represented a net inflow of 29.6 billion won, pushing the fund’s net asset value to over 4 trillion won. Currency movements are adding to gold’s appeal. The Korean won strengthened to around the 1,430 won-level late last year following government verbal intervention and a variety of incentives to curb U.S. dollar demands. However, the Korean currency has steWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times