According to domestic gold prices from Geumsise.com on August 24, 2026, pure gold per don (3.75g) was quoted at 903,000 won for purchase, up 10,000 won from the previous day. The selling price was 773,000 won, also up 10,000 won from the previous day.

The selling price of 18K gold rose 8,000 won from the previous day to 571,000 won, while 14K gold rose 6,000 won to 443,000 won. Platinum per don (3.75g) was quoted at 360,000 won for purchase and 300,000 won for selling, both up 1,000 won from the previous day. Silver (3.75g) was unchanged from the previous day at 12,350 won for purchase and 11,500 won for selling.

■ Voices for 'Additional Hikes' Within the Fed... Market Calculations Grow Complex

Meanwhile, the calculus surrounding the gold market has become increasingly complicated. It has been confirmed that opinion within the U.S. Federal Reserve (Fed) favoring another rate hike if inflation does not sufficiently subside formed more broadly than expected. In addition, President Trump has repeatedly stated that rates should, on the contrary, be lowered given the strong economy, bringing not only the direction of monetary policy but also the issue of Fed independence back into focus as a variable for financial markets.

Gold is one of the assets most sensitive to such conditions. Because gold pays no interest, its relative investment appeal may diminish if U.S. rates rise or are likely to stay elevated for a prolonged period. Conversely, when the possibility of rate cuts grows and the dollar and real interest rates weaken, conditions often turn favorable for gold.

The problem is that the market currently cannot look in only one direction. According to the minutes of the July 28-29 Federal Open Market Committee (FOMC) meeting released by the Fed on the 19th, policymakers' vigilance regarding inflation at the time was considerable. Notably, the minutes contained content going beyond the level of a few dissents. Multiple participants assessed that inflationary pressures were showing up broadly and argued for a more hawkish policy stance. Many participants also judged that if inflation does not fall sufficiently toward the Fed's 2% target, further tightening might be necessary.

For a while this year, expectations were strong that the next step in U.S. monetary policy would be rate cuts. However, the July FOMC minutes showed no clear voices calling for rate cuts, while three members actually preferred raising rates. This suggests the market's focus could shift from 'when will rates come down' to 'is another hike needed.'

More notable is that the members advocating rate hikes emphasized the need for a preemptive response. They expressed concern that if the response to inflation is delayed, steeper and more costly tightening measures might be required later. One of the situations most feared in monetary policy is when inflation becomes entrenched over a long period, forcing the central bank to act belatedly with much stronger rate hikes.

This also has significant implications for gold. Gold prices are not driven solely by the current level of the benchmark rate. What matters far more is how far the market expects rates to go and how real interest rates, which reflect inflation, change. For example, if inflation falls quickly while nominal rates stay high, real rates could rise, increasing the burden on non-interest-bearing gold. Conversely, if inflation remains high while the central bank fails to raise rates sufficiently, real rates could fall, potentially benefiting gold.

■ President Trump Pressures for 'Rate Cuts'... Head-On Collision with the Fed

The market's current difficulty lies in the fact that both scenarios exist simultaneously. Within the Fed, some argue rates should rise further if inflation is not contained, while President Trump is pressuring the Fed from the opposite direction.

On the 19th, President Trump argued that the stronger the U.S. economy, the lower rates should be. He criticized U.S. rates as being artificially high and repeatedly stressed the need for rate cuts. He questioned the current practice of raising rates whenever U.S. economic indicators come in strong, arguing that a strong economy should lead to lower rates. Last July, he also publicly demanded that the Fed cut rates, saying the U.S. should have the lowest rates in the world.

Ultimately, the current structure surrounding U.S. monetary policy is quite unusual. Voices within the Fed call for rate hikes if inflation becomes unstable again, while the executive branch favors lowering rates to reduce borrowing costs.

■ Long-Term Treasury Yields and Fiscal Concerns as Variables... 'Rising Rates = Falling Gold' Formula Doesn't Hold

Adding to this is another variable: rising U.S. long-term Treasury yields. Recently, the U.S. bond market has reacted more sensitively to movements in long-term yields than to the benchmark rate. Concerns are spreading that as 10-year and 30-year U.S. Treasury yields remain elevated, mortgage, corporate financing, and government interest burdens could all grow simultaneously.

The U.S. Treasury's announcement of an expanded buyback program for long-term Treasuries is not unrelated to these market conditions. On the 19th, the U.S. 10-year Treasury yield fell to around 4.655% following the Treasury's action, and the 30-year yield dropped to 5.196%. However, long-term yields subsequently rose again, leading to assessments that unease in the bond market has not been fully resolved.

For gold, the direction of U.S. Treasury yields is critically important. If Treasury yields rise, investors can secure higher returns without bearing significant credit risk, which could diminish gold's relative appeal. In particular, if real yields excluding inflation expectations rise, this could directly pressure gold prices.

However, the reasons behind rising long-term yields also need to be distinguished. If yields rise because the economy is too strong and Fed hike odds increase, it could be negative for gold. On the other hand, if long-term yields rise due to concerns over growing U.S. national debt, expanding fiscal deficits, and Treasury supply burdens, the interpretation changes. The deeper the anxiety over fiscal soundness, the more demand for gold as a safe asset may simultaneously increase.

With U.S. national debt recently exceeding $40 trillion, wariness toward the long-term Treasury market continues. In the bond market, a key question is how much of the U.S. government's massive borrowing needs and Treasury supply private investors can absorb. Therefore, the simple formula that 'rising rates mean falling gold' cannot fully explain the current market. When confidence in the U.S. economy or financial system itself is shaken, gold can show strength even with high rates.

■ Central Bank Gold Purchases, the Dollar... Other Forces Moving Gold Prices

These changes have also been evident in gold's long-term uptrend. Gold showed a sharp rally starting in 2025, and earlier this year it hit a record level above $5,000 per ounce. At the time, the market analyzed that geopolitical uncertainty, central bank gold purchases, and safe-haven demand were the main drivers pushing up gold prices.

In other words, the forces moving gold prices recently are not limited to Fed rate policy. Central bank gold purchases worldwide, geopolitical tensions, U.S. fiscal deficits, long-term confidence in the dollar, and Treasury market volatility are all exerting influence simultaneously.

In particular, central bank gold purchases are regarded as one of the structural changes in the recent gold market. Individual investors tend to shift assets by comparing returns on gold, the dollar, and bonds, but central bank gold purchases are not necessarily based solely on short-term returns. Strategic purposes, such as diversifying foreign reserves or reducing dependence on a specific country's currency and financial system, may be at work. If such demand persists, it is hard to rule out the possibility that the impact of rising U.S. rates on the gold market would be weaker than in the past.

The dollar is also a key variable. International gold prices are denominated in dollars. Generally, a stronger dollar raises the cost of purchasing gold for investors outside the U.S., potentially weighing on gold prices. Conversely, a weaker dollar creates a relatively favorable environment for gold. If the Fed leaves the door open to additional rate hikes, this could support the dollar in the short term. However, if the Trump administration's pressure for rate cuts intensifies and market doubts about Fed independence grow, the situation could change.

[This article is by no means an investment recommendation. The content may be merely opinion, so please do not use it as a reference or data for investment. All investments are made at each individual's own judgment, and the final responsibility lies with the investor. This publication bears no responsibility whatsoever.]