An employee organizes gold products at the Korea Gold Exchange in Jongno-gu, Seoul. (Yonhap)
SEOUL, Nov. 3 (Korea Bizwire) — After a steep rally followed by a sharp correction, global gold prices appear to be stabilizing and preparing for another climb, analysts said Sunday.
According to data from the Chicago Mercantile Exchange’s COMEX market, December gold futures closed at $4,013.40 per ounce on October 31, down 0.06 percent from the previous session.
Gold had hit a record high of $4,359.40 on October 20 before plunging below the $4,000 mark within a week. Prices have since rebounded slightly and are hovering around $4,010 per ounce.
Analysts said renewed demand for safe-haven assets was driven in part by the lack of a “big deal” at last week’s U.S.-China summit in Busan, which produced only a limited “tactical truce.”
A display gold bar at the main branch of Korea Gold Exchange in Jongno, central Seoul. (Yonhap)
“The trade war may have entered a pause, but with unresolved issues like semiconductor tariffs, investors still see risks, and that has lifted safe-haven demand,” said Ok Ji-hui, an analyst at Samsung Securities.
However, the rebound has been restrained by hawkish remarks from U.S. Federal Reserve Chair Jerome Powell, who cautioned after the October Federal Open Market Committee meeting that another rate cut in December was “not a given,” tempering hopes for a global liquidity rally.
Despite the short-term pullback, analysts maintain that gold’s medium- to long-term trajectory remains bullish.
“Gold rose too quickly, so a brief correction was natural,” said Sim Soo-bin, a researcher at Kiwoom Securities. “Overall, the trend still points upward.”
Park Sang-hyun of iM Securities agreed, saying, “Even if Powell sounded cautious, the rate-cut cycle is likely to continue into early next year, keeping gold attractive.”
Others noted that ongoing U.S.-China tensions, a weakening dollar, and continued global liquidity expansion are likely to sustain demand.
“Gold will likely resume its rise,” said Choi Jin-young of Daishin Securities. “Most major economies are injecting liquidity again, and that supports both inflation hedges and safe assets like gold.”
Choi added that in a global “liquidity party,” silver and equities could outperform gold given their higher sensitivity to cash flows. Silver, which followed a similar correction, has already rebounded from a late-October low of $46.8 to $48.25 per ounce on COMEX futures.
Ashley Song (ashley@koreabizwire.com)
