South Korea forecasts nationwide rain to ease drought
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IN SHORT
The Bank of Korea has invested over $250 million in a U.S. gold exchange-traded fund (ETF), SPDR Gold Trust, marking its first gold acquisition in 13 years. This move comes as South Korea's weather agency forecasts nationwide rain over the upcoming three-day weekend, aiming to alleviate a severe drought impacting southern regions with critically low reservoir levels.
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Key Numbers
$250MBank of Korea's gold ETF holdings
13 yearsTime since Bank of Korea's last gold investment
679,765Shares of SPDR Gold Trust purchased by Bank of Korea
$250.4MValue of SPDR Gold Trust shares at end of Q2
Who's Involved
Bank of Korea
Central bank that invested in a U.S. gold ETF
SPDR Gold Trust
U.S. gold exchange-traded fund holding Bank of Korea's investment
South Korea
Nation expecting nationwide rain to ease drought
South Korea's weather agency
Forecasting nationwide rain to alleviate drought
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Key facts
The Bank of Korea holds over $250 million in a U.S. gold ETF.
This is the Bank of Korea's first investment in gold in 13 years.
The central bank purchased 679,765 shares of SPDR Gold Trust.
The shares were valued at $250.4 million at the end of the second quarter.
South Korea forecasts nationwide rain over the upcoming three-day weekend.
The rain is expected to alleviate a severe drought impacting southern regions.
Southern areas have experienced significantly below-average precipitation.
Reservoir levels in southern regions are critically low.
The Bank of Korea has revealed its first investment in gold in 13 years, holding over $250 million in a U.S. gold exchange-traded fund (ETF). The central bank purchased 679,765 shares of the SPDR Gold Trust, which were valued at $250.4 million as of the end of the second quarter. This significant investment in gold by the Bank of Korea represents a notable shift in its reserve management strategy after a long period without gold holdings.
In parallel, South Korea is anticipating nationwide rainfall over the upcoming three-day weekend. The country's weather agency forecasts this precipitation to potentially alleviate a severe drought that has been impacting the southern regions. These southern areas have experienced significantly below-average rainfall, resulting in critically low reservoir levels and exacerbating drought conditions. The forecasted rain offers a hopeful outlook for water resource management in the affected parts of the country.
↳ Why This Matters
The Bank of Korea has revealed its first investment in gold in 13 years, holding over $250 million in a U.S. gold exchange-traded fund (ETF). The central bank purchased 679,765 shares of the SPDR Gold Trust, which were valued at $250.4 million as of the end of the second quarter. This significant investment in gold by the Bank of Korea represents a notable shift in its reserve management strategy after a long period without gold holdings.
Frequently asked questions
Low precipitation in recent months has led to significantly below-average rainfall, causing water storage levels to drop.
Southern parts of the country, especially South Gyeongsang Province, are most severely impacted.
Fire trucks and military vehicles have been deployed to supply water to drought-hit areas, and a national firefighting mobilization order was issued for South Gyeongsang Province.
What Happens Next
01Nationwide rain is expected over the weekend.
02The rain is forecast to continue for two days.
03The low-pressure system is advancing from Shanghai.
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