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Retail investors are pouring large sums into gold exchange-traded funds (ETFs). With the won-dollar exchange rate recently turning back up and the won weakening, analysts say gold has become more attractive.

According to ETFCheck on the 14th, retail investors net bought 92.3 billion won worth of “ACE KRX Physical Gold” over the past month. They have purchased 29.6 billion won worth so far this year alone. As retail money has piled in, the ETF’s net assets have surpassed 4 trillion won.

Gold prices have been soaring as geopolitical uncertainty broadens, including the Russia-Ukraine war and escalating tensions between the United States and Venezuela. On the New York Mercantile Exchange, February-delivery gold futures closed the previous day at $4,624.14 per troy ounce, continuing to reset record highs.

Analysts also point to the renewed rise in the won-dollar rate—after it had calmed following authorities’ market intervention late last year—as another factor boosting gold’s appeal. Gold is a quintessential safe-haven asset that tends to be favored when currency values are unstable. The won-dollar rate surged from the start of the year to the 1,470-won range. It fell as low as 1,429.8 won following official intervention, but has since returned to prior levels.

Experts forecast that buying interest in gold will intensify further amid a high exchange-rate environment and a U.S. policy-rate cutting cycle. Bank of America (BofA) said “an expansion in fiscal spending driven by U.S. President Donald Trump’s policies could lead to a decline in currency value,” and projected that gold prices could jump to $5,000 per troy ounce this year. Goldman Sachs also said “increased gold purchases by global central banks and an easing monetary-policy stance will drive gold higher,” forecasting that gold could reach $4,900 per troy ounce by year-end.

Reporter Maeng Jin-gyu maeng@hankyung.com