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An increasing number of retail investors are turning to gold, prompted by intensifying political uncertainties brought on and amplified by last week's martial law fiasco, data showed Monday.

Further fueling investor demand for the safe-haven and inflation-hedge asset are the U.S. Federal Reserve's easing policies and global geopolitical uncertainties.

Demand for gold tracked up after the Fed's half-a-percentage-point rate cut in September, fanned by investor concerns over a potential higher inflation and a subsequent increase in holdings of the inflation-hedge asset.

Many say the trend will continue, given greater trade and tariff tensions under the second Trump administration and the Fed's further easing in the months to come.

According to the Korea Exchange (KRX), the combined increase in net gold holdings of retail investors reached 191.2 kilograms during the spot trading from Wednesday to Friday.

They sold a combined total of 110.8 kilograms, about a third of 302 kilograms purchased.

The net purchase in September was limited to around 209.1 kilograms, but it reached 1,213.4 kilograms in October, a six-fold increase.

In November, the amount dropped to 592.9 kilograms. However, this month saw the net purchase register 343.3 kilograms in just five sessions.

The domestic demand for gold bucks the global trend, as evidenced by the international spot gold price dipping to $2,640.55 (3.79 million won) per ounce on Friday (local time), down 0.9 percent from $2,663.59 per ounce end-November.

Macquarie said in a Friday report that "there is still room for gold prices to rise further next year and they may hit record highs," as the Fed cuts interest rates and the central bank increases gold reserves.

Gold may be in trouble in the first quarter of 2025 due to a stronger dollar, the report said, but it will expand its gains after that.

Macquarie analyst Marcus Garvey said if Chinese demand picks up or if President-elect Donald Trump's policies worsen the U.S.' fiscal outlook, the price of gold could "quickly challenge" $3,000 per ounce.

The global investment banking and financial services provider said the average price of gold in the first quarter of 2025 will reach $2,650 per ounce, 1.9 percent higher than previously predicted.

From April to June, it added, the average price of gold will reach $2,800, 12 percent higher than the previous estimate. After that, gold may lose some of its appeal, it said.

The combined sales of gold mediated by three local commercial lenders – KB Kookmin, Shinhan and Woori – came to 6,256 kilograms.

The figure is slightly up from 6,249 kilograms as of end-November, but a decrease from 6,285 kilograms at end-October.

The number of "gold accounts" sold by the three exceeded 2.7 million, and their balance total came to 750.2 billion won.