Several mainland gold and jewelry brands once again lowered the price of gold jewelry on the morning of September 24th, with some brands dropping below 1300 yuan per gram. Compared to late August, prices for the same brand have fallen by over 100 yuan per gram, while the international gold price continues to decline.
According to reports from “Zhongxin Jingwei,” on the morning of September 24th, Lao Miao Huang Jin’s gold jewelry was priced at 1293 yuan per gram, a decrease of 17 yuan from the previous day; Chow Tai Fook priced at 1297 yuan/gram, down 12 yuan; and Lao Feng Xiang priced at 1300 yuan/gram, a decrease of 17 yuan.
On August 25th, Chow Tai Fook was priced at 1408 yuan per gram. Based on the prices on the morning of September 24th, it has dropped by 111 yuan within a month. Chow Sang Sang also saw a decline from 1410 yuan per gram to 1299 yuan during the same period, a 111 yuan decrease.
Despite the price drop, there are still consumers choosing to wait and see. Mr. Zhang, who is preparing to get married next year, told the “Beijing Daily” that he feels the gold price is still falling and hopes to wait for the right time to purchase the “three gold” for his wedding.
The international spot gold price fell by 1.64% on September 23rd, closing at around $4286 per ounce. On September 24th, the price dropped to below $4280 per ounce at one point.
On September 16th, the Federal Reserve announced an increase in the federal funds rate target range by 0.25 percentage points to 3.75%-4%.
Jiang Han, a senior researcher at Pangu Think Tank, told mainland media that the Fed’s rate hike and the strengthening of the US dollar are putting pressure on gold prices. The significant increase in gold prices before this also prompted some investors to sell for profit as prices fell.
He also mentioned that consumers are becoming more cautious in purchasing gold jewelry, with more choosing to hold cash and wait. As a result, the demand in the physical market is weakening.