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Photo courtesy of Korea Exchange |
[Alpha Biz= Kim Jisun] Escalating tensions between the United States and Iran have triggered a classic “risk-off” shift across global financial markets, with gold emerging as a primary beneficiary.
According to the Korea Exchange, spot gold on the KRX gold market closed at KRW 249,200 per gram as of 3:30 p.m. on March 3, up 4.14% from the previous session on Feb. 27. Gold-linked exchange-traded funds also advanced, with TIGER KRX Gold Spot and ACE KRX Gold Spot rising 4.34% and 4.29%, respectively.
The rally reflects gains in international gold prices over the holiday period that had yet to be priced into domestic markets. Over the weekend, global gold futures extended their advance as the Iran crisis intensified. April-delivery gold futures are currently trading above $5,300 per troy ounce. Although prices have retreated from a recent high of $5,433, they remain about 2% above the $5,194 level recorded on Feb. 26 prior to the escalation.
At one point, international gold prices surged more than 2% intraday, highlighting heightened investor anxiety. Market observers suggest that if geopolitical instability drags on, gold could rise as much as 15%, potentially reaching $5,800 per ounce.
In contrast, silver futures fell 4.76% after rallying 26.9% over eight trading sessions in late February. Analysts attributed the decline to speculative funds rotating out of silver and into gold, which is widely regarded as a more stable safe-haven asset. Silver is generally more volatile than gold.
Meanwhile, Bitcoin—after plunging sharply on the day of the airstrikes—has begun attempting a rebound, reflecting mixed sentiment in risk assets.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
