Bank of Korea Makes First Gold Investment in 13 Years with $250M in ETFs

The Bank of Korea has made a significant investment in gold-related assets for the first time in 13 years, purchasing $250 million in gold exchange-traded funds (ETFs). This acquisition, which includes 679,765 shares of the SPDR Gold Trust (GLD), is part of the central bank's broader strategy to diversify its reserve assets and enhance reserve management.

As of June 2026, the Bank of Korea's gold holdings stood at 104.4 metric tons, accounting for approximately 1.1% of its foreign-exchange reserves. The renewed interest in gold investments by a major central bank is being closely observed by market participants, as it may signal an increase in central bank demand for gold, potentially influencing market pricing.

Key takeaways from this development include:

• The Bank of Korea's gold-linked investment suggests a strategic pivot towards gold amid global economic uncertainties.
• Market pricing indicates that increased central bank interest could support higher gold prices.
• Observers are keen to see if other central banks will follow suit and increase their gold investments.

Market participants will also be monitoring geopolitical developments and economic data, such as U.S. inflation rates and Federal Reserve monetary policy decisions, which could impact gold prices in the future.

New Developments on Bank of Korea's Gold Investment

• The Bank of Korea has made a $250 million investment in a gold exchange-traded fund (ETF), marking its first gold-linked investment in 13 years.
• As of the end of June, the Bank of Korea held 679,765 shares of SPDR Gold Shares, valued at approximately $250.4 million.
• Gold accounted for roughly 6.4% of the Bank of Korea's disclosed portfolio, which includes four other holdings worth a total of $3.89 billion.
• Despite the ETF purchase, the official gold stockpile remains unchanged at about 104.4 tons, as physical bullion is treated as a separate long-term reserve asset.
• Earlier in August, the Bank of Korea announced it is establishing a framework for domestic gold purchases, the first such initiative in nearly six decades.
• In the second quarter, central banks globally added a record net total of 289 tons of gold, with Poland leading the additions at 51 tons.
• The last physical gold purchase by the Bank of Korea occurred in 2013, when it acquired 20 tons.
• In contrast, China added approximately 20 tons of gold in July alone, reflecting a shift in investor demand as gold-backed funds attracted $3 billion in July.