Gold prices in South Korea have fallen nearly 10% over the past month as a stronger dollar, rising U.S. Treasury yields and expectations of further Federal Reserve rate increases weakened demand for the non-yielding asset. Gold with 99.99% purity closed at 183,940 won per gram on the KRX gold market on the 28th, down 19,070 won, or 9.4%, from 203,010 won on Aug. 28. A 10 million-won investment made a month earlier would be worth about 9.06 million won on a simple valuation basis. Spot gold similarly fell to $4,110.55 an ounce during trading on the 28th, its lowest level in about seven weeks, before settling at $4,136.81, down 3.61% from the previous session. The metal had traded above $4,500 an ounce on Aug. 28. Higher oil prices have renewed inflation concerns and strengthened expectations of additional U.S. monetary tightening. Rising yields reduce gold's relative appeal because it pays no interest, while a stronger dollar makes the metal more expensive for buyers using other currencies. South Korean investors must also account for the won-dollar exchange rate because global gold is priced in dollars while KRX gold trades in won. Investment demand has remained firm: global gold ETFs (exchange-traded funds) recorded a net $18 billion inflow in August, the second-largest monthly inflow on record, and holdings increased by 121 tons to a record 4,189 tons. Hwang Byung-jin, an analyst at NH Investment & Securities, said inflation concerns are expected to ease gradually from March next year despite continued uncertainty around oil prices. He said pressure for short-term real rates to rise further is limited compared with the first half of this year, while net inflows continue into physical gold exchange-traded products. Hwang maintained a forecast that gold will recover to $5,000 an ounce within this year.