Recently, the topic of “plummeting gold prices” surged to the top of Weibo’s trending list, attracting widespread attention.
According to a report from the China Securities Journal, on June 8th, field visits to gold shops in Beijing revealed that due to the sharp drop in international gold prices and the promotion activities for the Dragon Boat Festival, many gold shops are offering significant discounts. For example, Lao Feng Xiang reduced the price by 70 yuan per gram.
A salesperson at a Lao Feng Xiang store in Beijing mentioned that due to the short-term decline in international gold prices, the quoted price at Lao Feng Xiang dropped by 20 yuan per gram in a day. Coupled with a Dragon Boat Festival promotion discount of 50 yuan per gram, the price for purchasing gold on June 8th after the discount was 656 yuan per gram, which is 70 yuan cheaper per gram compared to buying gold on the 7th.
At Lao Feng Xiang stores, the prices before discounts were 706 yuan per gram for 24k gold jewelry, 756 yuan per gram for 24k gold ornaments, and 656 yuan per gram for gold bars. At their peak, the prices for 24k gold jewelry and ornaments at Lao Feng Xiang were once close to 800 yuan per gram.
Apart from Lao Feng Xiang, brands like Zhou Dasheng and China Gold are also offering significant discounts on gold. After the discount, Zhou Dasheng’s quoted price is 588 yuan per gram, and China Gold’s quoted price is 558 yuan per gram.
“The promotion for the Dragon Boat Festival includes a discount of 120 yuan per gram for gold and a return of 300 yuan for every 1000 yuan spent on jewelry. The overall discount is quite substantial,” stated the person in charge of a Zhou Dasheng store.
However, it was reported that the number of people purchasing gold at the scene was relatively low.
During the May Day holiday this year, the demand for gold in China remained sluggish.
The sharp market fluctuations have sparked discussions from various perspectives. Some netizens expressed a sense of helplessness as they had bought gold just before the big drop.
Other netizens believe that the fluctuation in gold prices does not have a clear correlation with external factors in the long term, but rather is a result of speculators taking advantage of the situation.
Some netizens are welcoming the price drop and hope that gold prices continue to decline. Especially for those planning to buy gold jewelry, they are looking forward to further decreases in gold prices to seize the opportunity to buy their desired gold items.
On the evening of June 7th, the United States released strong non-farm payrolls data, leading to a significant decrease in market expectations for a rate cut by the Federal Reserve. Consequently, this triggered a sharp increase in the US dollar index and a sharp decline in gold, silver, and virtual currencies.