As gold trading became active amid the gold price march, the average daily trading value on the Korean Exchange (KRX) gold market in July reached a record high.

According to the exchange, the average daily trading value in the KRX gold market last month was KRW 11.3 billion, which was more than twice as high as in June (5.2 billion KRW).

This is the record high on a monthly basis since the KRX Gold Market was opened in March 2014, exceeding the average daily trading value of KRW 9.7 billion in August last year.

Accordingly, the cumulative transaction value this year was KRW 1,145 billion as of the 11th, exceeding KRW 1 trillion for the first time ever.

The average daily trading volume last month was 176 kg, which was the highest.

The increase in gold trading is attributed to the increasing demand for gold as the high gold price march continues.

On the 13th of last month, the price per gram of spot gold of 1kg in the KRX gold market was 69,000 won based on the closing price, which was 69,000 won on the 18th of May, the highest price ever. The highest price, such as 70,000 won and 7,300 won on the 16th, continued on the march, and it rose to 80,000 won for the first time in history with 8,100 won on the 28th.

This is the result of the global gold price rise due to lower real interest rates and demand for safe assets as part of the economic stimulus plan after Corona 19.

On the 4th (local time) on the New York Merchandise Exchange, gold for December delivery was traded at $2,021 per ounce.

Hwang Hyun-soo, a researcher at Shinyoung Securities, pointed out that the price of gold is rising sharply as the demand for safe assets increases due to the Corona 19 pendemic (a global pandemic).

"As gold is a real asset that does not pay interest, the falling real interest rate, which is the opportunity cost of gold, is a factor driving the increase in gold prices," said Bang Min-jin and Hwang Seong-hyun, a researcher at Eugene Investment & Securities. As the real interest rate environment is expected to be prolonged, gold prices will rise in the mid to long term.”

In fact, the gold price in the KRX gold market has not risen to the 80,000 won level after recording 8,100 won based on the closing price on the 28th of last month.

As such, the average daily trading value for this month is KRW 19.1 billion and the trading volume is 243 kg, which is higher than in July.

Researcher Hwang Hyun-soo said, "There is a possibility of realizing profits due to a short-term surge and the burden of renewal of the report." There is room for an increase,” he predicted.

(Photo = Yonhap News)