Gold prices hit 10-month low on hope of economic recovery

SEOUL, Feb. 19 (Yonhap) -- Gold prices in South Korea hit a 10-month low as hope of an economic recovery has made the bullion less attractive, data showed Friday.

A gram of gold changed hands at 63,900 won (US$57.7) on the domestic market Friday, down 0.48 percent from the previous session, according to the Korea Exchange.

It marked the lowest price since April 6 last year, when the price stood at 63,780 won.

The closing prices were also down 20.22 percent from an all-time high of 80,100 won per gram recorded on July 28 this year.

Prices of gold, a key safe-haven asset, spiked in the first half of last year due to jitters over an economic recession stemming from the coronavirus outbreak and greater market volatility.

But gold prices have recently been on the decline on expectations for an economic recovery and positive news on vaccine development.

Instead of gold, some investors appeared to have favored other assets as a hedge of inflation.

Last month, bitcoin topped 40 million won per unit for the first time in South Korea.

It just took 11 days for the cryptocurrency to top the 40 million-won mark after it broke the 30 million-won threshold on Dec. 27, 2020.

The bull run in cryptocurrency transactions came as investors viewed the virtual currency as a relatively safe asset amid the new coronavirus pandemic, according to industry watchers.
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