Gold prices in S. Korea hit new high on safe-haven rush

(ATTN: UPDATES price quotation in 2nd para)
SEOUL, Aug. 9 (Yonhap) -- Domestic gold prices set a fresh record high on Tuesday on increased demand for safer assets amid concerns over a slowdown in the U.S. economy and lingering debt problems in Europe, industry sources said.
The retail price of 1 don (3.75 grams) of pure gold in the country stood at 243,200 won (US$223), up 11,200 won from Monday's quotation, according to the Korea Gold Exchange, a local gold dealer. The don is a Korean unit used to measure gold.
The figure could translate into a one-don pure gold ring, a common present for a baby on its first birthday, fetching over 260,000 won when taxes and other costs are added, the sources said.
The price per don of gold in South Korea surpassed the 200,000-won mark in June last year. In August 2008, the retail price of gold was some 110,000 won per don.
South Korea's financial markets have been rattled by the downgrade of the U.S. credit rating and escalating concerns over a slowdown in the U.S. economy and debt problems in the eurozone.
The country's key stock index, the KOSPI, plunged more than 10 percent during the past five trading sessions as foreign investors curtailed their exposure to local shares.
Runaway gold prices are also becoming a global trend as investors move to hold onto safer assets in the face of high uncertainty caused by the downgrade of the U.S. credit rating, the escalating sovereign debt crisis in Europe and a slowdown in the U.S. economy.
Gold is trading near an all-time high on speculation that the U.S. Federal Reserve may roll out additional stimulus measures amid signs that the economy may relapse into a recession.
Gold for December delivery gained as much as 0.7 percent, extending gains to a record $1,724.60 an ounce in New York on Monday.
sam@yna.co.kr