According to domestic prices from Geumsese.com on August 1, the buying price of pure gold (3.75g) rose by 1,000 won from the previous trading day to 817,000 won, while the selling price held steady at 703,000 won. The selling price for 18K (3.75g) was 518,000 won, and for 14K (3.75g) it was 402,000 won, with both items showing no change from the previous trading day.

Looking at precious metals overall, platinum (3.75g) recorded the most notable increase. The buying price stood at 327,000 won (+6,000 won) and the selling price at 273,000 won (+5,000 won), with both sides rising. Meanwhile, silver (3.75g) remained unchanged from the previous trading day, with a buying price of 10,750 won and a selling price of 10,250 won.

Market Attention Turns to the Fed and PCE

Participants in the domestic precious metals market point to U.S. monetary policy and inflation indicators as the key variables that will determine the future direction of gold prices.

The U.S. Federal Reserve (Fed) froze its benchmark interest rate at 3.50–3.75% annually at its July Federal Open Market Committee (FOMC) meeting. This marks the fifth consecutive hold this year and the second consecutive rate hold under newly appointed Chairman Kevin Warsh. The market is on high alert, trying to gauge the timing of a future shift in policy stance.

The subsequently released June Personal Consumption Expenditures (PCE) price index rose 3.7% year-on-year, while the core PCE, excluding food and energy, increased by 3.3%. Following the PCE release, market forecasts regarding the timing and pace of rate cuts remain mixed.

Persistent High Rates vs. Rate Cut Expectations: Gold Prices Could Move Both Ways

Analysts suggest that international gold prices will react sensitively each time additional clues are provided by future U.S. employment and inflation indicators as well as comments from Fed officials.

If expectations gain ground that interest rates will remain elevated for an extended period, it could act as a burden on gold prices. Conversely, if expectations for rate cuts resurface, the possibility of further increases in gold prices is also being discussed.

※ Investment decisions are the responsibility of each individual, and as short-term volatility has expanded, a cautious approach is required.