In recent times, gold prices on the mainland have experienced significant fluctuations, leading to differing attitudes among investors. Some have taken advantage of price corrections to buy large quantities of gold bars, while others have purchased and quickly sold for quick cash. A jewelry store owner in Hangzhou, Zhejiang Province, mentioned that she had previously stocked up on gold at high prices, only to sell at a loss after the gold price fell, losing at least “1.5 sets of houses.”
According to a report by “Daily Economic News” on June 16, following a sharp increase in the previous trading day, spot gold continued to rise on June 16. At the time of the report, spot gold rose by 0.88% to $4347.57 per ounce, while spot silver rose by 0.82% to $70.56 per ounce.
The prices of gold jewelry on the mainland have also been adjusted accordingly. On June 16, Zhou Shengsheng’s 24K gold jewelry was priced at 1305 yuan/gram, an increase of 5 yuan from the previous day; Laofengxiang’s 24K gold jewelry was priced at 1298 yuan/gram, an increase of 8 yuan from the previous day; and Laomiao’s 24K gold jewelry was priced at 1310 yuan/gram, an increase of 20 yuan from the previous day.
Prior to the rebound in gold prices, the gold market had experienced a sharp decline. The fluctuating gold prices have led to a clear divide in the mindset of mainland investors, with some continuing to buy while others are eager to sell and exit the market.
As reported by “China New Economic Orbit” on June 15, in several gold shops in Beijing, the number of customers has significantly decreased from the beginning of the year’s peak, but there were still individuals buying large quantities of gold bars.
At the investment gold bar counter of Beijing Caibai Jewelry flagship store in Xicheng District, one investor purchased 900 grams of gold bars at a price of 940.20 yuan/gram, totaling around 850,000 yuan.
Another investor bought 100 grams of gold bars at the same price. The investor mentioned that on June 11, the price of gold bars had dropped to over 880 yuan/gram, and at that time, he had missed the opportunity to buy at a lower price.
Some investors opted to sell in the short term. One investor bought 10 grams of investment gold bars at 890 yuan/gram on June 11, and sold them five days later at 940.40 yuan/gram, making a profit of less than 500 yuan. The investor stated that due to the significant fluctuations in gold prices, they would sell when not at a loss.
The volatility in gold prices has also affected gold shop owners. According to a report by “Qianjiang Evening News,” Lufengyun, a jewelry shop owner in Hangzhou with over 30 years of gold processing experience, mentioned that during the recent decline in gold prices, she had stocked up on over a kilogram of gold, but now she has run out of funds to continue stocking up.
Lufengyun explained that when the price of gold was at 1150 yuan/gram, she had accumulated a significant amount of gold, intending to keep it for her son’s wedding and house purchase. However, as the gold price dropped, she sold it at around 1000 yuan/gram. She described how she had “lost at least one and a half houses.”
Another gold recycling store owner told “China New Economic Orbit” that recently, there have been fewer people looking to sell gold, as many individuals had bought at higher costs previously and selling now would result in losses that are hard to accept emotionally.
Regarding the recent rebound in gold prices, Yu Mengguo, the general manager of Jinpeng Futures, mentioned to “China Business News” that this was related to changes in the Middle East situation, a drop in oil prices, a weakening US dollar, and funds buying in after the previous decline in gold prices.
However, he believed that in the short term, it would still be difficult for gold prices to break out of a unilaterally upward trend. The market continues to focus on the policy signals from the Federal Reserve. If inflation pressures persist in the United States and interest rates remain high, gold prices may continue to be suppressed, and substantial fluctuations are expected to persist in the short term.
Qurui, Senior Deputy General Manager of Research and Development at Orient Gold Truth, also stated that the recent rebound in gold prices is more of a correction for the previous larger decline and does not signify an established upward trend. The future trend will still depend on the policy signals released at the Federal Reserve’s interest rate meeting.