South Korean Gold ETFs Up 2.7%, Silver Surges 4.9% as Fed Rate Hike Odds Drop Below 30%

According to Asia Economy, South Korean gold and silver ETFs rebounded on July 4 after weak U.S. employment data reduced expectations for interest rate increases. Gold ETFs including ACE KRX Gold Spot and KODEX Gold Futures rose 2.1-2.75%, while silver ETFs climbed 2.82-4.9%. U.S. June nonfarm payrolls increased 57,000 versus the forecast of 110,000, prompting CME FedWatch to show July 29 FOMC rate hike odds below 30%.

As interest-rate-sensitive assets, gold and silver gain relative appeal when rate hike expectations decline. A survey by the Official Monetary and Financial Institutions Forum (OMFIF) of 74 central banks managing over $10 trillion in assets found 64% expect gold to exceed $5,000 per troy ounce by June 2027, while 30% plan to increase gold holdings within 12-24 months.