Bank of Korea buys gold on dips, increases gold ETF holdings by 40% in Q3

The Bank of Korea increased its holdings in a gold exchange-traded fund by more than 40% in the third quarter, after re-entering gold investment in the second quarter for the first time in 13 years. The central bank bought gold as prices fell, as part of a plan to raise its medium- to long-term gold allocation. Meanwhile, preparations for the Bank of Korea to purchase domestic physical gold are expected to advance before the end of the year. According to the central bank's third-quarter 13F filing submitted to the U.S. Securities and Exchange Commission on the 15th, as of the end of September it held 956,869 shares of the U.S.-listed SPDR Gold Trust, with a position value of US$364.41 million, equivalent to about 488.3 billion won. Compared with 679,765 shares at the end of the second quarter, it added 277,104 shares, an increase of 40.8%; the position value rose 45.5% from US$250.41 million. The increase in market value exceeded the increase in the number of shares held because rising gold prices drove up the ETF's market price, which, combined with the additional purchases, meant the US$114 million increase in market value did not come entirely from newly purchased gold. The international gold price soared to US$4,658.59 per ounce at the close on August 25, then continued to fall, dropping to US$3,884.77 per ounce on the 13th, down 16.6% from August 25.