Taipei Exchange spot gold transactions rise 3,100% from same period last year

台北交易所黃金現貨交易量較去年同期成長3,100%

TAIPEI (Taiwan News) — Spot gold trading on the Taipei Exchange has increased more than 30-fold since the start of the year, reflecting continued investor interest in safe-haven assets as geopolitical risks persist.

As of Tuesday, total spot gold transactions reached 35,172. This marked a 3,103% increase from 1,098 during the same period last year, according to CNA.

Average daily turnover rose to NT$128 million (US$4.2 million), up from NT$13.57 million a year earlier. The average price per Taiwan mace, equivalent to 3.75 grams, climbed to about NT$19,000, from NT$11,200 during the same period last year.

TPEx lists spot gold products from the Bank of Taiwan and First Bank. The exchange noted that gold is seen as a safe-haven investment that tends to hold value during market fluctuations, supporting both trading and prices.

Bloomberg analyst Mike McGlone said gold prices, around US$5,000 per troy ounce (1 t oz ≒ 31.1 g), are high and comparable to peaks in 1980 and 2011. Without persistent inflation similar to the 1970s or ongoing extreme geopolitical risks, prices may face downward pressure toward US$4,000 per t oz, according to LTN.

Gold is currently 1.6 times higher than its five-year average, reaching levels last seen during the 1979–1980 peak. At the same time, the precious metal is gaining value relative to the S&P 500 stock index, suggesting its strength against equities may be nearing a limit.

McGlone also highlighted a gap in volatility. Gold prices have been more than twice as volatile as the S&P 500, the widest difference since 2006. He said that if stock market fluctuations rise, it could put pressure on gold.

Another indicator, the gold-to-oil price ratio, has reached unusually high levels. By late February, it climbed to 79, a level only briefly seen in April 2020 and far above the long-term average of about 20. McGlone suggested these signals may indicate that gold has peaked, and future commodity prices could move back toward average levels.