International gold prices rose slightly, with the domestic purchase price of pure gold at one don (3.75g) hovering around 780,000 won. With news that the U.S. fiscal deficit has approached $2 trillion, attention is focused on how gold prices will move going forward.

■ Today's Gold Prices: International Gold at $4,181.10 per Troy Ounce

As of October 17, Korean time, the international gold price on the New York Mercantile Exchange stood at $4,181.10 per troy ounce, up 0.26% from the previous day.

In the domestic market, the gap between the buying and selling prices of one don of pure gold remained wide. On the same day, according to the Korea Gold Exchange, one don of pure gold was 786,000 won when buying and 670,000 won when selling, a spread of 116,000 won. According to Geumsise.com, the buying price was 780,000 won and the selling price 685,000 won. The difference in purchase prices between the two companies was 6,000 won, while Geumsise.com's selling price was 15,000 won higher.

Consumers considering gold transactions should examine not only international gold price movements but also each domestic dealer's buying and selling prices and actual transaction conditions.

■ U.S. Fiscal Deficit at $1.992 Trillion: Largest Since 2021

In the international gold market, the U.S. fiscal situation has emerged as a notable variable. The U.S. Treasury Department announced that the federal government's fiscal deficit for fiscal year 2026 reached $1.992 trillion. This is about a 12% increase from the previous year and the largest deficit level since 2021. The U.S. government's annual revenue was around $5.4 trillion, but spending reached $7.4 trillion. In particular, the interest burden from accumulated national debt is emerging as a major challenge in fiscal management.

If fiscal burdens persist, they could affect investors' assessment of the dollar and U.S. Treasuries, making this fiscal situation a noteworthy point in the gold market as well. Gold traditionally attracts attention as an alternative asset during periods of heightened economic uncertainty.

However, an expanding U.S. fiscal deficit does not directly translate into higher gold prices. The impact on gold prices may vary depending on changes in market interest rates due to Treasury issuance burdens and dollar movements. Notably, gold is an asset that pays no interest, so if U.S. real interest rates rise, its relative investment appeal could weaken.

■ Gold's Direction: Fed Monetary Policy, Exchange Rates, and Other Variables Converge

Ultimately, international gold prices are expected to be influenced by multiple variables, including U.S. fiscal soundness concerns, Federal Reserve (Fed) monetary policy, inflation trends, and the dollar's value. Domestic gold prices are also affected not only by international prices but also by the won-dollar exchange rate, so domestic prices do not necessarily move in tandem with rising overseas gold prices.

With international gold prices at the $4,180 level, attention is on whether gold prices can continue their upward trend alongside global financial market movements after the weekend.

[This article is by no means investment advice. The content may merely reflect opinions, so please do not use it as a reference or material for investment. All investments are made by individual judgment, and the final responsibility lies with the investor. This publication assumes no responsibility.]