According to data released by the Korea Exchange on Wednesday, the average daily trading volume of KRX gold spot products stood at 218,708 grams in July, down 51.6 percent from 451,831 grams in June. Average daily trading value also dropped 54.4 percent to 42.66 billion won from 93.47 billion won.
Compared with January, when gold trading reached its peak, trading volume plunged 78.4 percent and trading value fell 81.8 percent. The decline has continued this month, with average daily trading volume falling to 89,589 grams and average daily trading value dropping to 16.7 billion won during the first four days of August.
Gold prices have also weakened, with the KRX gold spot price falling from a yearly high of 269,810 won per gram on Jan. 29 to a yearly low of 185,990 won on July 30.
Gold-related exchange-traded funds (ETFs) have also continued to see outflows as investors as investors turn their attention to other assets.
According to financial platform Koscom's ETF Check, individual investors sold the most shares of ACE KRX Gold Spot among domestic commodity ETFs over the past month, resulting in net outflows of 26.5 billion won. Another leading gold ETF, TIGER KRX Gold Spot, also saw net selling of 12.9 billion won.
Market analysts say the sharp drop reflects weakening investor sentiment rather than just a decline in gold prices. They point to continued high interest rates in the U.S., which have reduced gold's appeal, while funds have shifted into growth stocks, particularly semiconductor-related shares.
"Gold prices are often more affected by changes in market liquidity than stocks, which are more sensitive to the economic cycle," said Choi Jin-young, a researcher at Daishin Securities. He added that gold has fallen more than 30 percent from this year's peak as investors remain concerned about tighter monetary policies.
Oh Jae-young, a researcher at KB Securities, also said global liquidity has been concentrated in certain assets such as semiconductor stocks, dampening investor sentiment toward gold.
A recovery in gold prices also remains to be seen, as demand from Chinese retail investors, who helped fuel last year's rally, has slowed. In addition, gold purchases by the People's Bank of China have also slowed, as its recent buying has been aimed more at diversifying its reserves rather than supporting prices.
AJP Takeaways:
- The average daily trading volume of gold spot products on the Korea Exchange (KRX) fell 51.6 percent to 218,708 grams in July 2026, down from 451,831 grams in June 2026, according to data released by the Korea Exchange on Aug. 5, 2026.
- The average daily trading value of KRX gold spot products dropped 54.4 percent to 42.66 billion won in July 2026, down from 93.47 billion won in June 2026.
- Compared with January 2026, when KRX gold trading peaked, trading volume plunged 78.4 percent and trading value fell 81.8 percent by July 2026.
- KRX gold trading continued declining in early August 2026, with average daily trading volume falling to 89,589 grams and average daily trading value dropping to 16.7 billion won during the first four trading days of the month.
- The KRX gold spot price fell from a yearly high of 269,810 won per gram on January 29, 2026, to a yearly low of 185,990 won per gram on July 30, 2026.
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