The price of gold is back to the "5 figure", can it still rise?

Sino-Singapore warp and weft

2024-05-07 10:46Posted on the official account of Beijing Zhongxin Jingwei

China-Singapore Jingwei, May 7 (Li Ziman) "The current gold price is at least 30 yuan cheaper per gram than half a month ago. The price is cheaper, and there are preferential activities, and there are still many people who come to buy gold during the May Day holiday. Beijing Xidan Joy City Lao Fengxiang store sales staff said.

During the past "May Day" holiday, the return of gold prices to the "5" has become a hot topic.

On the 6th, Sino-Singapore Jingwei visited a number of shopping malls in Beijing and found that Chow Tai Fook, Chow Sang Sang, Lao Fengxiang, China Gold and other brand gold jewelry still maintained the "May Day" holiday preferential activities, and the price per gram was still more than 600 yuan after the discount. The sales staff of a number of gold jewelry brands said that they had not heard of any brand whose gold price dropped to more than 500 yuan per gram, and it was possible that the price of some brands would be cheaper in some areas.

The price of gold is back to the "5 figure", can it still rise?

Chow Sang Sang store. Photo by Li Ziman

After the full reduction, it still exceeds 600 yuan per gram

According to reports, during the "May Day" holiday, the sales staff of Zhou Taisheng's store said that the discount per gram during the holiday was 100 yuan, and the discount was 599 yuan/gram, and the cost of production was calculated separately.

On the 6th, Sino-Singapore Jingwei visited Beijing CapitaMall Xizhimen Store, Xidan Joy City, Xidan Shopping Mall and Beijing Juntai Department Store as a consumer.

According to the sales staff of Beijing Juntai Department Store Chow Tai Sheng store, the gold price of some goods during the "May Day" holiday is reduced by 100 yuan, and some goods are reduced by 60 yuan from the gold price, and the labor costs are calculated separately, according to the gold price today (6th), the gold price per gram is still above 600 yuan. Regarding the above-mentioned statement of "599 yuan/gram after the discount", the salesperson did not answer positively, only said that "some store activities are different".

"The price of gold changes every day, and it will not always maintain a price, and it seems that more than 600 yuan/gram is the norm at present. The salesperson said.

On the 6th, Zhongxin Jingwei contacted the Chow Tai Sheng store in a shopping mall in Daxing District, Beijing, and the sales staff of the store said that all gold jewelry in the store is currently 599 yuan/gram.

Talking about the reason for the difference in prices from other stores, the sales staff of the above-mentioned Chow Tai Sang store said that on the basis of brand preferential activities, the preferential activities of the shopping mall where they are located are superimposed, so the price is temporarily cheaper than other stores, and the duration of the price is uncertain, and it will be adjusted according to the international market price in the future.

On the 6th, Chow Tai Fook, Lao Fengxiang, Chow Tai Sheng, and Chow Sang sang were listed in the price range of 705 yuan/gram to 708 yuan/gram, and under the "May Day" holiday preferential activities, Chow Tai Fook was reduced by 15 yuan per gram, Lao Fengxiang was reduced by 50 yuan per gram, Chow Sang Sheng was reduced by 60 yuan per gram, and China Gold was reduced by 80 yuan per gram. After the discount, the price ranges from 607 yuan/gram to 692 yuan/gram.

Sino-Singapore Jingwei visited and found that only store staff were tally or talking at the counters of many gold jewelry brands.

Gold jewellery brand stores. Photo by Li Ziman

"There are still a lot of people who come to buy jewelry during the 'May Day' holiday, and today is the first day of work after the holiday, so there are fewer people. Zhou Shengsheng salesperson said.

A Chow Tai Fook salesperson said that compared with the Spring Festival period, there are relatively few people who buy gold in March and April, but the gold price has fallen during the "May Day" holiday, and there are still many people who come to buy gold jewelry on the upcoming Mother's Day.

"Now the basic purchase is just need, people who are ready to get married and give gifts may not look at the price, and there are more festivals in May, and there are more people who come to buy than last month. The Chow Tai Fook salesperson said.

Regarding the current decline in gold prices, the sales staff of many gold jewelry brands said that on the whole, gold prices will not fall too much, and there is a possibility that they will rise again.

The sales staff of the Lao Fengxiang store of Xidan Joy City in Beijing said: "At present, the price of gold fluctuates more seriously, and many people are buying more and more. ”

The salesperson also said that he could use investment gold bars to exchange for gold jewelry, and only need to supplement the gram price difference and jewelry labor costs. The price of investment gold bars is lower than the price of jewelry, and if you buy investment gold bars and then exchange them for gold jewelry, it will be more cost-effective than buying them outright. However, if consumers exchange gold bars for jewelry, they cannot enjoy the preferential price of the "May Day" holiday, and must be calculated according to the gold price of the day, and after the gold bars are taken to the store, they must be melted to verify the authenticity.

Will gold prices continue to fall?

Since the beginning of this year, the overall price of gold has been climbing. According to the daily trading data released by the Shanghai Gold Exchange, on April 15, the price of Au99.99 rose to an all-time high. On the same day, the opening price was 567.01 yuan/gram, the closing price was 558.68 yuan/gram, and the highest price was 576.99 yuan/gram. The price of gold jewelry also reached 737 yuan / gram in mid-April, rising to an all-time high.

With the correction of international gold prices, China's domestic gold prices also corrected significantly at the end of April.

As of the close of trading on May 6, the opening price of Au99.99 on the Shanghai Gold Exchange was 545.8 yuan/gram, the highest was 545.8 yuan/gram, and the closing price was 544.13 yuan/gram, down 31.19 yuan per gram from the highest price on April 15. At the same time, the price of gold jewelry has also fallen by about 30 yuan per gram from 737 yuan / gram half a month ago.

Will gold prices continue to fall in the future?

Tan Yaling, an independent economist at the China Foreign Exchange Investment Research Institute, told China-Singapore Jingwei that the price trend of gold prices this year remains unchanged, and it is currently a phased and technical correction. After all, geopolitical risks remain tense and the upward trend in the inflationary environment remains unchanged, especially as some countries increase their holdings of gold as a means of currency competition. It is expected that there is a possibility that gold will rise to $2,500 this year, and the low level of $2,000 will be repaired.

Precious metals analyst Ma Yinchen pointed out to Zhongxin Jingwei that the current market has largely priced in the impact of the Federal Reserve's interest rate cut, if the Federal Reserve does not cut interest rates or the rate cut is less than expected, then gold prices may have a certain shock or even fall. Overall, the international gold price is expected to rise steadily this year due to safe-haven demand and demand from de-dollarization.

Tan Yaling said that for investors, the allocation of gold wealth management products should pay attention to the investment and wealth management gold parameters are very important, but not the main asset allocation focus. At present, the high price of gold is not conducive to a large increase in holdings, on the contrary, it is important to follow up the price plan and demand strategy in batches and enter the market prudently. If you understand, you will benefit, and if you don't understand, you will be risk.

Xue Hongyan, vice president of Xingtu Financial Research Institute, pointed out that long-term holding of gold can outperform inflation and is suitable for medium and long-term asset allocation. However, the price of gold is a typical risk asset, especially short-term volatility, with high uncertainty, investors should try to avoid buying at high levels. Looking at the next three to five years, gold is still expected to continue its outstanding performance in the context of accelerating de-globalization and rising global uncertainties. For domestic investors, high-quality investment products are becoming more and more scarce, and holding a certain position of gold for long-term investment is a good choice.

(The views in the article are for reference only and do not constitute investment advice, investment is risky, and you need to be cautious when entering the market.) )

Editor in charge: Wei Wei and Li Zhongyuan

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