On October 30, 2026, domestic gold prices closed lower. According to Gold Price Dot Com's domestic gold price data, all items declined in unison, including pure gold (24K), 18K, and 14K, as well as platinum and silver.

■ Today's Gold Prices... Pure Gold, 18K, 14K, Platinum, and Silver All Decline

As of October 30, according to Gold Price Dot Com, the price of pure gold (24K) per don (3.75g) was 754,000 won for buying and 655,000 won for selling. Both the buying and selling prices fell by 3,000 won compared to the previous day.

The 18K gold price fell by 2,000 won from the previous day to 484,000 won for selling, and the 14K gold price also dropped by 2,000 won from the previous day to 375,000 won for selling.

Platinum per don (3.75g) fell 7,000 won from the previous day to 277,000 won for buying, and dropped 6,000 won to 230,000 won for selling.

Silver per don (3.75g) also recorded declines, at 9,150 won for buying (down 200 won from the previous day) and 8,550 won for selling (down 400 won).

■ U.S. and European Central Banks Successively Freeze Interest Rates

Amid this, the central banks of the United States and Europe have successively frozen their benchmark rates, drawing attention in the international gold market to future changes in monetary policy. Following the U.S. Federal Reserve (Fed), the European Central Bank (ECB) also decided to maintain its current rate levels, putting the spotlight on dollar movements, Treasury yields, and interest rate differentials between major countries—all factors that influence gold prices.

The ECB held a monetary policy meeting in Frankfurt, Germany, on October 29 (local time) and decided to keep all three key policy rates at their current levels. Accordingly, the deposit rate was frozen at 2.50% per annum, the main refinancing rate at 2.65%, and the marginal lending rate at 2.90%. The deposit rate, which serves as the benchmark for ECB monetary policy, is 0.50 percentage points lower than South Korea's benchmark rate (3.00% per annum).

The interest rate gap with the United States was also maintained. The U.S. Federal Reserve had earlier frozen its benchmark rate target range at 3.75–4.00% per annum at its Federal Open Market Committee (FOMC) meeting on October 28 (local time). The U.S. benchmark rate stands 1.25–1.50 percentage points higher than the ECB's deposit rate.

■ Factors Influencing Gold Prices: Interest Rates, the Dollar, Inflation, and Treasury Yields

Interest rate decisions by major central banks act as important variables in the gold market. Because gold is an asset that pays no interest or dividends, higher market rates can increase the relative burden of holding it. Conversely, falling rates can reduce the opportunity cost of holding gold.

However, a benchmark rate freeze itself does not determine whether gold prices rise or fall. The gold market's reaction may vary depending on how much investors have already priced in the possibility of future rate cuts, and on how U.S. Treasury yields and the dollar's value actually move.

In particular, the interest rate gap between the United States and Europe can affect gold prices through the foreign exchange market. If the relatively higher U.S. rate level supports a stronger dollar, this could weigh on international gold prices, which are traded in dollars. When the dollar's value rises, investors using other currencies face higher costs to purchase gold. Conversely, a weaker dollar could create favorable conditions for gold prices.

Inflation trends are also an important variable. The U.S. September personal consumption expenditure (PCE) price index rose 3.6% year over year. While this slightly missed the market forecast of 3.7%, the month-over-month increase of 0.5% was higher than August's 0.3%. If inflationary pressure persists, the Fed may be more likely to keep rates elevated, which could weigh on gold in terms of opportunity cost. On the other hand, if concerns about inflation expand, demand for preserving asset value through gold, a tangible asset, may increase. Therefore, the impact of inflation on gold prices should be assessed by examining both monetary policy outlooks and real interest rate movements.

Another variable the gold market is watching is U.S. Treasury yields. When U.S. Treasury yields rise, the relative appeal of gold, which pays no interest, may diminish. Conversely, falling Treasury yields can reduce the opportunity cost of holding gold. In particular, the real interest rate, which reflects expected inflation subtracted from nominal rates, is cited as one of the key indicators for judging gold prices.

■ What to Watch in the Gold Market Going Forward

Although the United States and Europe simultaneously froze rates, it cannot be assumed their future monetary policy paths will be identical. Depending on inflation and economic conditions in each region, future rate decisions may differ. In the international gold market, upcoming U.S. economic indicators, the Fed's monetary policy direction, and the ECB's subsequent decisions are expected to be the main points of observation.

To determine the direction of gold prices, it is necessary to comprehensively review not only central bank rate decisions but also the dollar index, U.S. Treasury yields, and changes in real interest rates. While the U.S. and European rate freezes have maintained current policy rate levels, this has not settled the direction of gold prices. Future rate outlooks and dollar movements remain key variables in the gold market.

[This article is for informational purposes regarding investment. Investment decisions and any resulting responsibility rest with the investor.]