International gold prices have been falling recently, leading to a decrease in retail prices of gold jewelry in China. On June 10th, prices of gold jewelry from several brands in China dropped below 1300 yuan per gram. Compared to the high points earlier this year, the prices of some gold jewelry brands have fallen by over 400 yuan per gram.
According to a report from “Daily Economic News” on June 10th, the spot price of gold continued to decline, dropping below $4200 per ounce at one point during the morning Beijing time. At the time of the report, the spot price of gold was $4174 per ounce, marking a consecutive decline for four trading days with a total drop of nearly $300. This is a decrease of around $1400 compared to the high points earlier this year.
The downward trend in international gold prices has also been transmitted to the retail market of gold jewelry in China. As reported by “21st Century Economic Report” on the same day, several gold jewelry brands in China simultaneously adjusted their prices downwards. The report cited official information from various gold jewelry brand mini-programs, stating that on June 10th, the price of Zhou Dasheng gold jewelry was 1276 yuan, Lao Feng Xiang was 1276 yuan, Chow Sang Sang was 1277 yuan, Lao Miao was 1283 yuan, and Chow Tai Fook was 1271 yuan.
“Daily Economic News” reported that on June 10th, the prices of gold jewelry per gram for Chow Sang Sang, Lao Miao, and Lao Feng Xiang had decreased by 45 yuan, 34 yuan, and 40 yuan respectively from the previous day.
Compared to the high points earlier this year, the price drops of some gold jewelry brands have exceeded 400 yuan per gram. “Daily Economic News” mentioned that on January 29th, the prices of gold jewelry from Chinese brands had reached a periodic high point earlier this year. On that day, the prices per gram for Chow Sang Sang, Lao Miao, and Lao Feng Xiang were 1708 yuan, 1722 yuan, and 1713 yuan respectively. In comparison to the prices on June 10th, these three brands each experienced a decrease of 431 yuan, 439 yuan, and 437 yuan, with drops of around 25%.
Chinese media reports also pointed out that the decline in gold prices has impacted the gold consumption market. When gold prices were consistently high, gold jewelry consumption in China was suppressed. With the rapid decline in gold prices, some stores saw an increase in inquiries, but whether consumers make purchases still depends on their judgment of the future gold price trends. Consumers who bought gold at high prices before are now facing losses based on the current prices.
Regarding the recent trend in gold prices, some institutions believe that the decline is related to market expectations of interest rate changes, the strengthening of the US dollar and US bond yields, changes in geopolitical risks, and physical gold demand. According to a report from “China News Finance”, the Rongxin Futures Research Institute stated that this round of gold price decline is related to expectations of interest rates, geopolitical risks, physical demand, and changes in central bank gold purchases.