Mainland gold jewelry brands have seen a significant drop in prices in less than a month, with prices falling by over 100 yuan per gram. On September 15th, several brands quoted their 24K gold jewelry below 1300 yuan per gram, while international spot gold prices also fell below $4300 per ounce.
According to “21st Century Business Herald,” on September 15th, the quoted prices of 24K gold jewelry from Chow Tai Fook, Chow Sang Sang, Lukfook Jewelry, and Chow Tai Seng all dropped below 1300 yuan per gram, ranging from 1290 yuan to 1299 yuan, representing a decrease of around 10 yuan compared to the previous day.
On August 25th, the quoted prices of 24K gold jewelry from Chow Tai Fook and Chow Sang Sang were 1410 yuan and 1408 yuan per gram respectively. By September 15th, the prices of these two brands had declined to 1299 yuan and 1296 yuan per gram, representing a drop of 111 yuan and 112 yuan respectively in less than a month.
International spot gold continued its decline on September 15th, falling below $4300 per ounce during trading.
According to Reuters, on that day, spot gold fell by 0.3% to $4285.88 per ounce. The previous day’s gold price had already fallen to its lowest level since August 7th.
Recent increases in international oil prices have exacerbated market concerns about inflation rebounding. The yield of US Treasury bonds and the strength of the US dollar have risen in tandem, further fueling market expectations for a Fed rate hike. As gold itself does not generate interest, a rise in interest rates usually weakens its attractiveness.
The focus of the precious metals market has shifted from whether the Fed will cut interest rates to whether it will continue to raise them.
The Federal Reserve held a monetary policy meeting on September 15th to 16th and will announce its interest rate decision on the afternoon of the 16th in Eastern Time.
As of the 15th, the CME FedWatch tool showed that traders are expecting a probability of over 92% for a 25 basis point rate hike by the Federal Reserve, up from 88.5% the previous day. If the hike occurs, the Fed’s target rate range will increase from the current 3.5%-3.75% to 3.75%-4%.
Morgan Stanley changed its forecast on the eve of the meeting, expecting the Fed to raise rates by 25 basis points in September and December. Goldman Sachs and other Wall Street institutions have also shifted their predictions towards rate hikes.