South Korea's Central Bank Plans to Increase Gold Reserves

Gold Acquisition Plans from the Bank of Korea

The Bank of Korea is considering increasing its gold reserves after a decade. This situation draws attention, especially with the increasing uncertainties in the markets.

Reasons and Timing of the Plans

The Director of the Reserve Investment Division, Heung-Soon Jung, stated, “We are evaluating additional gold purchases from a medium and long-term perspective.” Jung made these remarks at an event held in Kyoto on Tuesday, organized by the London Bullion Market Association and the London Platinum and Palladium Market.

Recent Developments

Jung's statements come after gold prices broke records by exceeding $4,380 per ounce last week. A sudden reversal in prices has been observed following the previous overheating in the market.

Market Monitoring Strategy

Jung indicated that the central bank would determine the timing and quantity of gold purchases. He noted that decisions would be made considering the situation of international reserves and the relationship between gold and the Korean won.