[Young journalist Hojun Lee] Global gold prices have hit record highs, continuing an “endless rally.” Expectations of U.S. Federal Reserve interest rate cuts, a weaker dollar, and increased gold purchases by global central banks are fueling speculation that prices could surpass $5,000 per ounce in the first half of next year. If that happens, domestic gold prices in Korea could approach 1 million won per don(about 3.75 grams).

According to the financial industry on the 10th, spot gold prices at the London Bullion Market Association (LBMA) reached an all-time high of $3,646.29 per ounce during intraday trading on September 8 (local time). December gold futures on the Chicago Mercantile Exchange (CME) also closed at $3,677.40, up 0.7% from the previous day.

Korean markets are also seeing sharp gains. On the KRX gold market, the spot price for 1 kilogram of gold climbed to 1,659,100 won, up about 10% in just ten days. At the Korea Gold Exchange, the price of pure gold per don hit a record 707,000 won, a 53% increase compared with only a year ago. 

The main driver of the rally is the prospect of Federal Reserve rate cuts. With recent weak employment data, markets have already priced in at least a 0.25 percentage point cut, while some see the possibility of a larger 0.5 point “big cut.” The weaker dollar is also boosting demand for gold: the U.S. Dollar Index (DXY) has dropped to the mid-97 range, down sharply from around 110 last year. Added pressures include former President Donald Trump’s criticism of the Fed and rising gold purchases by global central banks.

A strengthening “de-dollarization” trend, particularly in emerging economies, has also contributed. The annual net increase in central bank gold holdings has doubled compared to 2015–2019. According to Shinhan Investment & Securities, reserves rose by 210 tons in just the first half of this year.

Experts predict the upward momentum will continue for the time being. Goldman Sachs has forecast gold reaching $4,000 per ounce in the first half of next year, with some scenarios pointing to $5,000—a level that would push domestic gold prices to nearly 1 million won per don. KB Securities and Shinhan Investment & Securities also expect gold to remain strong next year, citing rate cuts, a weak dollar, and geopolitical risks. 


▶원문 기사: 금값, 날개 달았다…"한 돈 100만 원 시대 오나" (이코노미스트, 2025. 9. 10) 

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