South Korea's central bank returned to gold after 13 years, while Goldman Sachs is expanding in income funds. Slower US inflation also supported bullion by lowering bond yields.
Economics & Markets··Midday
Gold returned to the reserve portfolio
The Bank of Korea made its first gold investment in 13 years. A US securities filing showed that it owned 679,765 shares of the SPDR Gold Trust at the end of the second quarter, worth 250.4 million dollars. The holding was absent from the first-quarter filing, placing the purchase between the two reports. The bank had last bought physical gold in 2013, when it acquired 20 tons. This time it used an exchange-traded fund rather than bullion, and the position counts as a foreign security within the country's reserve portfolio. SPDR Gold Trust shares were trading near 400 dollars when the report was published, after recovering from about 360 dollars the previous month. The central bank had separately announced plans to buy domestically produced bullion to diversify reserves against geopolitical and inflation risks. The fund purchase became the first visible market step in that direction, while the physical-gold plan remains a separate channel. After a long absence, the bank has regained exposure to gold prices through a listed security.[1]
Inflation data pulled yields lower
US consumer prices rose 0.1 per cent in July and 3.4 per cent over the year. The core index excluding food and energy increased 0.2 per cent for the month and 2.5 per cent from a year earlier. Energy fell 1.5 per cent during the month but remained 14.7 per cent higher over the year. Shelter rose 0.1 per cent and accounted for roughly two-thirds of the monthly headline increase; food also rose 0.1 per cent for the month and 3.0 per cent over the year. After the release, the implied odds of a September rate increase fell to about 40 per cent from roughly 48 per cent. The longer Treasury yield moved near 4.68 per cent and the shorter one near 4.20 per cent. Spot gold traded 0.90 per cent higher at 4,406.20 dollars an ounce and silver rose 0.89 per cent to 65.14 dollars. The S&P 500 gained 0.3 per cent and the Nasdaq Composite 0.5 per cent, while the Dow Jones fell 0.1 per cent. Lower rate expectations and bond yields reduced the relative cost of holding non-yielding gold, placing the central bank's new purchase in a supportive price environment.[2], [3]
Goldman Sachs is expanding in income funds
Goldman Sachs agreed to acquire NEOS Investments, a specialist in options-based income funds. The cash-and-equity consideration could reach 2.25 billion dollars, with a portion tied to performance and service commitments. NEOS managed 30 billion dollars across 19 funds as of June 30, 2026. Goldman Sachs Asset Management, Innovator and NEOS together oversaw more than 130 billion dollars of exchange-traded fund assets on that date. Citing Morningstar, the announcement said the combined operation was expected to rank as the eighth-largest active exchange-traded fund manager. The deal is expected to close in the first quarter of 2027, subject to regulatory approval. NEOS co-founders Troy Cates and Garrett Paolella will join Goldman Sachs Asset Management as partners after completion. The Bank of Korea's return to gold through an exchange-traded fund shows listed funds serving reserve management, while Goldman's acquisition points to institutional growth in income-oriented products from the same broad vehicle family. One offers exposure to bullion and the other options-based income; in both cases investor demand is being met through securities that can be bought and held in a portfolio.[4], [1]
