International gold and silver prices experienced a significant drop on May 4. Due to the influence of international gold prices, the prices of gold jewelry from several Chinese brands saw a sharp decline, falling below 1400 yuan per gram.
As of the close of trading on May 4 Eastern Time, the New York Mercantile Exchange (COMEX) gold futures fell by 2.53%, to $4526.7 per ounce; COMEX silver futures fell by 4.23%, to $73.2 per ounce.
On the same day, the prices of gold jewelry from several Chinese brands were adjusted downwards. Chow Tai Fook’s gold products were priced at 1392 yuan per gram, Lao Miao’s gold jewelry at 1397 yuan per gram, and Chow Sang Sang’s gold jewelry at 1393 yuan per gram.
Meanwhile, some gold shops have started offering discounts on specific products. A promotional billboard at a Luk Fook Jewellery store in Hong Kong states, “Selected priced gold jewelry as low as 35% off.”
An employee at the store told “Daily Economic News” that this is their “One Price” gold products promotion. The employee explained that for the selected one-price gold jewelry, the discount starts at 25% for the first piece and further reduces to 35% for the second piece purchased.
In a Chow Tai Fook gold shop in Hong Kong, as reported above, the store has offered a 5% discount on selected gold chapters and gold bars. The staff mentioned that this discount has been available for one to two weeks, and purchasing designated one-price jewelry inlaid products also earns Chow Tai Fook loyalty points.
In Shenzhen, some gold jewelry brands are also offering promotional activities. A salesperson at a Chow Tai Fook store said that for the purchase of gold jewelry, new members can enjoy a discount of 50 yuan per gram; as of April 30, the price of gold was 1410 yuan per gram, reducing it by 50 results in 1360 yuan per gram. Apart from the price reduction per gram on gold, “One Price” products at the store are sold at a 30% discount.
Recently, the World Gold Council released its report for the first quarter of 2026, showing that global gold demand (including out-of-market transactions) reached 1231 tons, a 2% year-on-year increase. Despite the moderate increase in gold demand volume, the total demand amount skyrocketed to a record $193 billion, a substantial increase of 74% year-on-year.
Driven by rising gold prices and increasing hedging demand, global gold bar and coin investments surged by 42% year-on-year. China’s demand for gold bars and coins also soared by 67% to 207 tons, reaching a quarterly record high.
Shi Jialiang, Assistant General Manager of the Development Department of Zhongtai Futures Financing, told mainland media that the recent pullback in international gold prices is mainly due to several factors affecting gold prices changing simultaneously. The tension in geopolitical situations that has pushed up oil prices has increased market concerns about inflation, further leading investors to anticipate that the Federal Reserve may maintain high interest rates for a longer period. Under this expectation, the US dollar and US bond yields strengthened, naturally putting pressure on gold in the short term.
He further mentioned that with increased market volatility in recent times, some investors choose to sell gold to raise cash, meet margin requirements, or reduce leverage. This has caused a short-term failure in gold’s hedging properties. With multiple factors at play, international gold prices have been weakening recently and have fallen below several key price levels.