Entering mid-October 2025, the international gold price broke through historical highs and quickly experienced a “freefall,” triggering a chain reaction in the domestic gold prices in mainland China. Several mainland banks have adjusted the threshold for precious metal transactions, highlighting the extreme market risks.
In mid-October, renowned brands like Chow Tai Fook and Chow Sang Sang priced their 24K gold jewelry at around 1,215 yuan (Renminbi, RMB) per gram, with prices increasing by over 100 yuan per gram within a month. The price of Lao Miao gold surged to 1,218 yuan per gram.
On October 14th, the price of gold briefly surpassed $4,179 per ounce, but saw a sharp drop of nearly 90 dollars during the afternoon session.
Recently, the phrase “Gold Store Owner: Gold Price Decline Feels Like a Flood Discharge” trended on social media, sparking discussions.
China Blue News quoted a gold store owner in Hangzhou, Zhejiang province, vividly describing the market’s fluctuations: “On October 14th, the domestic gold price rose from 920 yuan per gram to 950 yuan per gram, only to drop back to 920 yuan per gram in the afternoon. It’s like a flood discharge when it falls.” This highlights the market’s vulnerability, making it difficult for “customers without resilience to withstand such fluctuations.”
On October 15th, the international gold price steadily rose, crossing the $4,200 per ounce mark during the trading session, setting a new historical high.
On the same day, domestic gold prices saw another historic breakthrough. The highest price for branded gold jewelry reached 1,235 yuan per gram. A gold recycling merchant in Hangzhou with 40 years of experience lamented that an average person can only buy 3 grams of gold with a month’s worth of salary. Nowadays, young people can only rent gold jewelry for their weddings, wearing them for a few days before returning them.
Blogger “Hot List Border Man” reported on the 16th: at noon on the 15th, my mother sent me a photo: she was standing at a Chow Tai Fook counter, holding a receipt in her hand, with a background of a crowded gold counter. “In the morning, it was 1,162 yuan per gram, and by the afternoon, it had risen to 1,178.”
Regarding domestic gold prices, Shanghai Gold Exchange’s spot gold (Au99.99) and the main contract of Shanghai gold reached highest prices of 960 yuan/gram and 960.42 yuan/gram, respectively.
On October 16th, the Xinjing Daily reported that as gold prices surged, several banks successively increased the minimum purchase amounts for savings gold.
According to the announcement from Bank of China, starting from October 15th, when purchasing savings gold products or creating a savings plan based on the amount, the minimum purchase amount was adjusted from 850 yuan to 950 yuan. Prior to this, Industrial and Commercial Bank of China and Ningbo Bank also announced an increase in the minimum purchase amount for savings gold to 1,000 yuan.
Researcher Lou Feipeng from China Postal Savings Bank mentioned that the adjustment of precious metal business by banks was mainly due to increased market volatility in gold prices in recent times, leading to significantly higher market risks.
In October, multiple banks increased the minimum purchase amounts for savings gold to 950-1,000 yuan, while the weight remained at 1 gram.
On October 14th, Bank of China stated in an announcement that, based on current market conditions, from October 15th, the bank would adjust the purchase conditions for savings gold products. The minimum purchase amount for buying savings gold products or creating a savings plan was increased from 850 yuan to 950 yuan. Additional purchase amounts remained unchanged in multiples of 200 yuan. Existing savings plans were not affected.
Industrial and Commercial Bank of China and Ningbo Bank both raised the threshold for savings gold purchases this month. On October 11th, Industrial and Commercial Bank of China announced that starting from October 13th, the minimum investment amount for its Yijin savings business was increased from 850 yuan to 1,000 yuan.
Ningbo Bank announced on October 9th that due to recent fluctuations in domestic gold prices, the bank adjusted the minimum purchase amount for savings gold from 900 yuan to 1,000 yuan starting from October 11th, while maintaining the 1-gram unit of purchase weight. Transactions with amounts less than 1,000 yuan would not be successful.
Dong Ximiao, Chief Researcher at Zhaolian and Deputy Director of Shanghai Finance and Development Lab, mentioned that some banks adjusted the starting amounts for individual gold business due to the rapid increase in gold prices recently. Regular investments in individual gold savings typically start with 1 gram of gold. In situations where gold prices are rapidly rising, banks adjust the starting amounts to adapt to market fluctuations, serving as a risk alert to investors.
Dong Ximiao stated that in the coming period, with global political, military, and economic complexities, the property of gold as a safe-haven asset remains strong. However, the fluctuations of gold prices at high levels will intensify. Investors should closely monitor market changes, make reasonable allocations of gold and related products based on their risk preferences and investment needs, actively control investment positions, and avoid blindly chasing highs and lows.
“It’s essential to choose investment products that suit yourself and that you understand, whether investing in gold or other products. Avoid following trends or blind investments,” said Dong Ximiao.
According to a report by the Shanghai Securities Journal, interviewed experts generally believe that in the long term, the core logic supporting the upward trend in gold prices still exists. However, in the short term, one should beware of the technical retracement risks hidden in the rapid rise of gold prices, which are expected to enter a volatile phase in the fourth quarter.
In the third quarter of this year, both international and domestic gold prices experienced high volatility in July, followed by continuous increases in August and September. Wind data indicates that the closing price of London spot gold rose by 16.8% from the opening price at the beginning of the quarter, while Shanghai Gold Exchange’s spot gold (Au99.99) saw a 14.5% increase.
Lu Weijia, Director of Trading for Heraeus Precious Metals in China, mentioned that despite high gold prices restraining physical gold consumption, investment demand continued to rise, making up for the slump in physical consumption. In September, global gold ETF holdings increased by 3.6 million ounces, reaching 97.2 million ounces, the highest level since September 2022, representing a 17% growth from the beginning of the year. In the final week of September, gold ETF inflows continued, further increasing holdings by 603,000 ounces.