Gold Prices Hit Year-to-Date Lows of 189,810 Won on July 24 Amid Oil Surge; Rebound on Middle East Easing

According to the Korea Exchange, gold prices on the KRX market hit year-to-date lows of 189,810 won per kilogram on July 24, down 29.65% from January's peak of 269,810 won. The decline was driven by surging crude oil prices triggered by US-Iran military escalations, which prompted expectations of Federal Reserve rate hikes and reduced the relative appeal of non-yielding gold as a safe asset. Brent crude briefly exceeded $100 per barrel, while US 10-year Treasury yields reached 4.7%.

As US-Iran tensions eased on July 24 with Oman-mediated negotiations and both sides halting military operations, Brent crude prices fell sharply to $87 per barrel. Gold prices recovered, reaching 192,210 won on July 27, up 1.26% from July 24. Analysts expect gold to continue recovering as international crude prices stabilize.