SEOUL, January 06 (AJP) - Investor interest in gold has carried into the new year after international prices nearly doubled last year, with securities firms expecting the uptrend to extend through 2026 as geopolitical risks and demand for safe-haven assets support prices.
According to the Korea Exchange on Tuesday, gold prices, after retreating late last year, have risen for three consecutive sessions since the start of the year.
International prices also moved toward record territory. Gold futures on the New York Mercantile Exchange closed on Monday at $4,436.90 per troy ounce.
Rising political and military uncertainty abroad has helped boost gold’s appeal relative to other commodities such as oil, analysts said.
Choi Ye-chan, a researcher at SangSangIn Securities, said major supply disruptions in the oil market appear unlikely, while expanding military activity and heightened geopolitical tensions could continue to underpin demand for gold. He said a strategy of being “long gold and short oil” could remain effective in 2026.
Some global investment banks have issued more bullish forecasts, predicting that gold prices could exceed $5,000 an ounce this year.
Gold prices climbed from around $2,300 an ounce in early 2024 to about $4,300 by the end of 2025, a gain of roughly 87 percent, making it the best-performing asset among major asset classes during that period.
The rally has also lifted returns for South Korea-listed gold exchange-traded funds. Gold ETFs posted an average annual return of 48 percent last year, according to market data. Korea Investment Management’s ACE Gold Futures Leverage led the group with a 132 percent gain.
NH Investment & Securities, in its report released on Monday, named gold a core theme in alternative investment portfolios.
Ha Jae-seok, a researcher at NH Investment & Securities, said volatility in financial markets is rising amid tariff-related risks and expectations that government bond yields will remain under upward pressure as major economies pursue expansionary fiscal policies.
“In that macro environment, gold’s attractiveness as a safe-haven asset is likely to strengthen,” he said.
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