Seoul, Feb 12 (IANS) Bank customers are rushing to buy gold on dashed hopes for early rate cuts by the Federal Reserve (Fed) and woes over the policies of US President Donald Trump’s administration, industry data showed on Wednesday.According to the data, the country’s top five banks -- KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup -- have sold a combined 24.2 billion won ($16.7 million) worth of gold bars this month, sharply up from 7.96 billion won a year earlier.
The tally also marks a sharp rise from 12.4 billion won during the same period of last month, reports Yonhap news agency.
The dim outlook for the Fed’s early rate cuts, along with increased uncertainties triggered by the Trump administration’s high tariffs, among other factors, is prodding bank customers to seek safe assets, such as gold.
As of Tuesday, the price of 1 gram of gold stood at 156,230 won, the highest since March 2014, when the country’s gold exchange was launched, and nearly double from 86,000 won on Feb. 13 last year.
The daily trading volume of gold in the country came to 102 billion won Tuesday, breaching the 100 billion-won threshold for the first time.
Meanwhile, South Korean stocks finished higher on Wednesday, led by gains of tech shares and shipbuilders, as investors digested US President Donald Trump’s new tariff scheme. The local currency fell against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 9.34 points, or 0.37 per cent, to close at 2,548.39, extending a winning streak to a second session.
Trade volume was moderate at 453.32 million shares worth 13.19 trillion won ($9.08 billion), with losers outnumbering winners 551 to 332.
Eyes are also on U.S. inflation data for January, which was to be released on Wednesday (US time).
--IANS