(Kitco News) - Despite recent volatility in the gold market, with prices holding initial support around $2,650 an ounce, many commodity analysts remain bullish on gold through 2025, partly due to elevated global geopolitical instability.
On Tuesday, South Korean President Yoon Suk Yeol introduced a new element of geopolitical uncertainty by declaring martial law and accusing the opposition-controlled Parliament of sympathizing with North Korea.
In a televised speech, Yoon stated that martial law would help "rebuild and protect" South Korea from "falling into the depths of national ruin."
"I will eliminate anti-state forces as quickly as possible and normalize the country," he said.
The President’s declaration follows a decline in his approval ratings in recent months and his ongoing struggle to advance his agenda in an opposition-controlled Parliament, which took office in 2022.
Adding to the uncertainty, Parliament voted to lift the martial law declaration just hours after the President’s announcement. Under South Korean law, martial law can be overturned with a majority vote in Parliament. However, military officials stated that martial law would remain in effect until Yoon himself rescinds the order, according to local media reports.
Although gold prices have not shown a significant reaction to the developments in South Korea, some analysts suggest that this is another supportive factor for the precious metal.
The gold market is currently trading near session highs. February gold futures last traded at $2,669.90 an ounce, up 0.43% on the day.
