Seoul: South Korean retail investors have been actively purchasing gold exchange-traded funds (ETFs) this month as they seek safer investment options amid a turbulent stock market.

According to Yonhap News Agency, individual investors acquired a net total of 5.4 trillion won (US$3.7 billion) of ACE KRX Gold Spot ETFs from November 3 until Wednesday. This investment product, introduced in 2021, tracks the price of the KRX Gold Spot Index, which is published by the Korea Exchange (KRX), South Korea's main bourse operator. It is notable for being the oldest among the five gold-related ETFs available on the local stock market.

The data indicates that retail investors were net buyers of the ACE KRX Gold Spot ETF for most of the 13-day period, with the exception of Tuesday, when they sold a net 93.4 billion won. Analysts have pointed to the volatile stock market, which has seen declines of over 3 percent on multiple occasions in recent weeks, driven by concerns about a potential artificial intelligence (AI) bubble.

Gold is traditionally viewed as a safe asset, often maintaining or increasing its value during periods of stock market volatility. Analysts also mentioned that expectations of a dovish stance from the U.S. Federal Reserve next year have further fueled interest in gold-related investments. Hwang Byeong-jin, an analyst from NH Investment and Securities Co., noted, "The Fed is expected to keep an easing stance on its monetary policy next year, as the American economy faces multiple headwinds, including its uncertain job market and inflationary pressures."

Hwang added that gold prices are likely to continue their upward trend as demand for the precious metal grows among investors and global central banks.