On April 23, the news of the drop in gold prices surged on mainland China’s social media hot search list. Apart from the international decline in gold prices, domestic gold prices in China also saw a similar adjustment. On the 23rd, several retail jewelry brands in China lowered their gold prices by about 14 yuan (RMB), and the A-share gold sector also experienced a decline.
Several topics about the drop in gold prices appeared on the hot search list of mainland social media platforms on the 23rd, with one topic stating “Gold price drops 14 yuan per gram overnight.”
According to “Chao News,” on the 22nd, spot gold in London fell by 2.72%, reaching $2326.810 per ounce, marking the largest single-day drop in nearly two years. Gold futures on the New York Mercantile Exchange (COMEX) also saw a significant decline, closing down by 3% at $2341.1 per ounce.
The report indicated that not only did international gold prices drop, but domestic prices also saw a decrease. On the 23rd, several retail jewelry brands like Chow Tai Fook and Chow Sang Sang lowered their gold prices by around 14 yuan. The price, which was listed at 733 yuan per gram on the 22nd, had been adjusted to 719 yuan per gram on the 23rd.
During early trading on the 23rd, the A-share gold sector also experienced a decline, with several individual stocks plummeting, such as “Lai Shen Tong Ling” hitting the limit down.
A senior manager at the international department of a state-owned bank in Zhejiang mentioned that the market believes the recent rapid rise in gold prices was due for a correction, as continuous increases without declines are unlikely. Factors contributing to the drop in gold prices, according to him, include easing tensions in the Middle East, waning attraction of gold for hedging, the diminishing expectations of interest rate cuts by the Federal Reserve, and the unfavorable trend for precious metals under the strong US dollar.
On April 13, Iran launched a large-scale air raid against Israel, with 99% of the projectiles being intercepted. In the early hours of April 19, Israel was accused of launching a counterattack against Iran. Iran downplayed the incident. Both sides showed some restraint during this conflict.
Meanwhile, expectations of interest rate cuts by the Federal Reserve in the United States have been repeatedly delayed.
Prior to this price adjustment, gold prices in mainland China had been continuously hitting new highs, soaring from over 600 yuan per gram to over 700 yuan per gram. In the first three months of 2024, the amount of gold imported into China increased by 34% compared to the previous year.
However, on April 11, the prices at several gold shops experienced a slight decrease, with some dropping by 1 yuan and others by “7 yuan per gram.” During that time, gold stocks also collectively saw a decline.