Korea Exchange (KRX) on the 26th asked investors to exercise caution as gold prices traded on the KRX gold market are far above international prices.
On this day in the KRX gold market, the 1 kg product closed at 179,800 won per gram (g). The 100 g product ended the session at 183,190 won per g. It continued to rise, exceeding the international gold price of 170,370 won per g.
Since the KRX gold market opened in 2014, domestic prices have moved in step with international prices. However, recently, gold prices transacted on the KRX gold market have diverged from international prices, forming a higher price range.
The exchange attributed this to the characteristics of the KRX gold market, which is based on physical bullion. The point is that a gap occurs when investment demand temporarily exceeds the supply of physical bullion. However, even in the past, after a typical short-term spike, KRX gold market transaction prices converged to international prices.
An exchange official said, "When investing, one should consider that recent KRX gold market prices are being set higher than international prices."