ACE KRX Physical Gold (411060) 🔎 In-depth

It follows the KRX Physical Gold Index. This index represents the price of one gram of 99.99% pure gold traded on Korea's domestic KRX gold market. You can think of it as a 'won-denominated domestic gold price' that reflects both the international gold price (in dollars) and the won-dollar exchange rate together.

The price moves along two axes. One is the international gold price (in dollars), and the other is the won-dollar exchange rate. Because the structure tracks the domestic gold price, the exchange rate is baked in, so if the dollar strengthens, the won-based gold price can rise even when the international gold price is unchanged. The gold price itself moves with factors such as the real interest rate (the rate minus inflation), dollar strength or weakness, geopolitical unease, and expanding gold holdings by central banks around the world.

Because it often moves differently from stocks and bonds, it is commonly used to diversify assets and cushion risk. It draws attention as a 'safe asset,' especially when uncertainty rises. That said, one should clearly understand that gold pays no interest or dividends and that its price swings are by no means small. Contrary to the perception that 'gold is always safe,' it is an asset that can rise and fall sharply over the short term.

The international gold price climbed to the $5,500-per-ounce range in January 2026, marking an all-time high, before falling back to the low-$4,000 range by mid-July. It has undergone a considerable correction from its peak, but compared with a year earlier it remains at a high level. Reflecting this trend, the price of this ETF also came under downward pressure in July 2026.

In a word, instead of buying gold directly and keeping it in a safe, this product lets you buy and sell it like a stock. Its worth depends solely on the gold price (and the exchange rate).