According to Goldprice.com on August 14, pure gold (3.75g) fell by 8,000 won to 737,000 won when selling, and dropped by 11,000 won to 860,000 won when buying. 18K gold fell by 6,000 won to 543,000 won when selling, and 14K declined by 4,000 won to 422,000 won when selling.

On the same basis, platinum fell by 4,000 won to 279,000 won when selling, and dropped by 6,000 won to 334,000 won when buying. Silver also declined by 200 won to 11,050 won when selling, and by 150 won to 11,850 won when buying.

S&P500's Record-High Rally… Attention Turns to the Gold Market as Well

As the S&P index continues its record-breaking rally, attention is also turning to the gold market. Throughout thousands of years, as monetary systems and nations changed countless times, gold has maintained its status as a means of storing wealth and value. Even today, when paper currency and digital assets sit at the center of financial markets, this long history of trust underpins gold's continued standing as a major asset.

While gold's presence may relatively weaken when stock markets show strength, in phases where multiple variables such as inflation, interest rates, and geopolitical uncertainty move simultaneously, gold's traditional function as a store of value is often reassessed.

In the New York stock market on the 13th (local time), the S&P500 index closed at 7,798.99, up 50.49 points (0.65%) from the previous session, setting a new record high on a closing basis. The Dow Jones Industrial Average recorded 53,839.99, up 69.72 points (0.13%), and the Nasdaq Composite finished trading at 26,803.03, up 214.54 points (0.81%). Amid this, all eyes are on how the U.S. stock market will close out the session on the 14th.

Background of the Stock Market Rally… Expectations for Inflation Data and the Interest Rate Path

One of the factors behind the stock market's rise is expectations surrounding U.S. inflation indicators and the future path of interest rates. The Producer Price Index (PPI) for July, released by the U.S. Bureau of Labor Statistics, rose 4.7% year over year. Core PPI, which excludes volatile items such as food and energy, also climbed 4.7% compared to the same month last year. The U.S. Consumer Price Index (CPI) for July, released earlier, likewise showed a trend largely within the range of market expectations. As a result, investors are reassessing the Federal Reserve's future monetary policy and the movement of Treasury yields.

Key Variables Moving Gold Prices: Interest Rates and the Dollar

The key variables driving gold prices are closely tied to these factors. Because gold is an asset that does not pay interest on its own, its relative investment appeal can grow when market rates fall or real interest rates decline. Conversely, when rates rise quickly, gold may find itself at a disadvantage in competing with interest-bearing assets such as bonds or deposits.

The value of the dollar is also a variable that is hard to overlook in the gold market. Since international gold trading is conducted mainly in dollars, a weaker dollar can reduce the burden of purchasing gold for investors using other currencies. Accordingly, the U.S. interest rate outlook and the direction of the dollar are cited as elements that must be examined together when assessing gold prices.

A Phase Where 'Simultaneous Review of Variables' Matters More Than Short-Term Fluctuations

However, it is difficult to explain the significance of gold solely through the movements of interest rates and the dollar. Gold is one of the longest-surviving stores of value in human history. In the current phase, where the U.S. stock market is setting record highs and interpretations of the direction of inflation and interest rates are shifting rapidly, it is necessary to simultaneously examine real interest rates, the dollar, central bank monetary policy, and geopolitical risks—just as much as gold's short-term fluctuations.

[This article is by no means an investment solicitation. All investments are made at each individual's own discretion and judgment, and the final responsibility lies with the investor.]