"Gold Hit 1 Million Won, Then Fell to 780,000 Won. Should I Have Sold My Gold Ring Then?"... Is the Drop in Gold Prices Over?

[Financial News] Gold prices, which had been surging, have fallen by nearly 20% from their peak. Bitcoin has also slipped to the $60,000 range, roughly half of last year’s high. Market participants say concerns over prolonged high U.S. interest rates are weighing heavily on both assets.

According to Investing.com on the 14th, spot gold prices closed at $4,219 on the 12th. That is down 21.9% from the year’s high close of $5,400 on January 28.
Domestic gold prices are also showing weakness. According to Korea Exchange (KRX), gold prices in the KRX Gold Market briefly fell to 196,780 won per gram on the 11th, slipping below 200,000 won for the first time since December last year. As domestic gold prices, which had approached 250,000 won per gram in March, have fallen rapidly, more than 16 billion won has recently flowed out of domestic gold-related exchange-traded funds (ETFs) over the past week.
The virtual asset market is in a similar state. Bitcoin closed at $63,556 in global trading on the 12th. That is 49.6% below its 52-week high recorded in October last year.

Market watchers point to fading expectations for U.S. rate cuts as the main reason for the joint weakness in gold and Bitcoin. As forecasts spread that the Federal Reserve System (Fed) will delay the timing of benchmark rate cuts, investors are shifting funds into U.S. Treasury securities and dollar assets, which offer relatively higher returns.
In Bitcoin’s case, the Nasdaq listing of U.S. space company SpaceX also appears to have had an impact. With more than $250 billion in investment demand pouring into the SpaceX IPO, some capital may have moved out of the virtual asset market.
Still, both gold and Bitcoin are expected to remain volatile in the short term. For gold, U.S. Treasury yields and inflation data are likely to determine the direction ahead. If upward pressure on rates eases, central bank buying and geopolitical uncertainty could support prices. On the other hand, if the strong dollar persists, the scope for a rebound is likely to remain limited.
Bitcoin’s $60,000 level is seen as a short-term psychological support line. Market participants say that if this level breaks, additional selling pressure could intensify.
gaa1003@fnnews.com Ahn Ga-eul Reporter