International gold prices rebound 12% amid geopolitical tensions... Investors favor safe-haven assets

As geopolitical tensions between the U.S. and Iran escalate, and following the Supreme Court’s ruling on reciprocal tariffs being illegal, international gold prices have rebounded to levels seen nearly a month ago. Analysts believe this recovery is driven by investors increasing their preference for safe assets in response to uncertainty.

Gold futures prices on the Chicago Mercantile Exchange have risen 12% over the past month. This fully recovers the sharp decline experienced at the end of January, when margin calls on gold and silver futures triggered a market plunge. Silver futures prices have also shown a similar rebound, with an increase of about 18% during the same period.

Geopolitical risk is one of the main factors prompting investors to favor safe assets like gold. As the possibility of President Trump considering additional tariffs emerges, such unease has intensified. Driven by this, gold buying has strengthened, leading to rising gold prices both domestically and internationally.

Domestic gold prices in South Korea are also on the rise. According to data from the Korea Exchange, domestic gold prices have increased by approximately 5% compared to last month. The upward trend was especially notable after the reciprocal tariff ruling was announced, and it continued during the trading days following the Lunar New Year holiday. The prices of gold-backed ETFs tracking gold have also rebounded, attracting significant investor attention.

Although the possibility of the Federal Reserve raising interest rates in the future may limit gold price gains, ongoing geopolitical tensions and tariff uncertainties are likely to continue supporting gold prices. Experts predict that as long as these geopolitical factors persist, the momentum for gold buying will continue.