Gold prices have crossed the US$2,700 mark, and domestic jewellery prices have also ushered in a new round of adjustment. On October 19, the international spot gold price rose like a rainbow, not only climbing to the $2,700 mark, but also closing at $2,721.12 per ounce, once again hitting a record high.
On October 19, the Shanghai Gold Exchange also rose to 619 yuan/gram for gold 9999 varieties.
Affected by the sharp rise in gold prices, major gold jewellery brands have raised the price of gold jewellery again, and some gold jewellery prices have exceeded the 800 yuan/gram mark. However, industry insiders pointed out that because of the high cost of gold jewelry and the limited recycling channels, it is difficult for consumers to share the benefits of rising gold prices.
The price of gold jewellery exceeded 800 yuan/gram, and there were also discounts
In gold stores such as Chow Tai Fook and Luk Fook Jewelry in Wangfujing Department Store on Zongfu Road, Chengdu, the listed gold price of gold jewelry also rose to 806 yuan/gram. "There are no events and no discounted prices for the time being," said the clerk.
However, the Red Star News reporter learned from the Chow Tai Fook gold store in Fanyue Plaza that although the gold jewelry was listed at a price of 806 yuan / gram, consumers could enjoy a discount of 50 yuan per gram. "Some places have discounts, some places don't, it mainly depends on the activities of different shopping malls," said the clerk of the gold store.
In the Lao Fengxiang flagship store on Zongfu Road, the listed gold price of gold jewellery today also rose to 806 yuan/gram. However, the clerk said that now there are activities in the store, and each gram can be reduced by 80 yuan, and the actual purchase price is 726 yuan / gram.
At China Gold's Chengdu flagship store in Yanshikou, the listed gold price has been raised to 679 yuan/gram, which is 127 yuan/gram short of the highest listed gold jewellery price.
"The price of gold has risen too fast, almost every week, the price of gold jewelry has risen by 40 yuan per gram this month", the clerk said, the current investment gold bar is actually more popular with investors, today's investment gold bar retail price is 634.5 yuan / gram, the recovery price is 618.50 yuan / gram.
Gold prices soared, but gold jewellery "rose lonely"
The international gold price rose from US$2,062.66 per ounce at the beginning of the year to US$2,721.12 per ounce, an increase of 31.92%; The price of gold 9999 varieties on the Shanghai Gold Exchange also rose from 480.80 yuan/gram at the beginning of the year to 619 yuan/gram, an increase of 28.74%.
However, the Red Star News reporter observed that compared with standardized investment gold bars, gold jewelry has a higher cost when sold, coupled with limited recycling channels, it is difficult for consumers to share the benefits of rising gold prices.
Ms. Hu spent more than 10,000 yuan to buy a 24-gram bracelet in September last year, when the price of gold jewelry was only 560 yuan/gram, although the price of gold jewelry rose above 800 yuan/gram today, "I went to a few gold stores to ask, some do not accept the recycling of gold jewelry, and the price of willing to recycle is only 599 yuan per gram, I feel that I am lonely!" ”
Analyst suggestion: reduce positions on high and enter the market with a pullback
Since the beginning of this year, gold has been soaring, why has the international gold price been particularly strong recently? A number of interviewed analysts believe that due to the successive interest rate cuts by global central banks, the expansion of balance sheets has strengthened the monetary attributes of precious metals, and central banks have alternately increased their holdings of gold, and the safe-haven attribute of the geopolitical situation has brought a lot of support to precious metals.
"There are several reasons for this round of gold rise", financial commentator Zhou Cong said, first of all, the Federal Reserve, the European Central Bank, the Bank of United Kingdom and other major economies in the world began to cut interest rates one after another, continuing to benefit non-interest-bearing assets, which is a long-term factor supporting gold prices; Second, the United States election is stalemate, and before the last boot lands, funds have a tendency to avoid uncertainty; In addition, the geopolitical situation began to heat up, and risk aversion further pushed up the price of gold, "Gold demand reached a record high of 1,258 tons in the second quarter of 2024, and the world's largest gold spot ETF - SPDR holdings reached a new high of 884 tons. ”
"In anticipation of the opening of the Fed's interest rate cut cycle, the European Central Bank has cut interest rates for the third time this month," Zhang Zhongyun, an analyst at Beite Futures, also said that the interest rate cuts of the world's major central banks are the main reason for gold's continued rise, and the escalating geopolitical tensions have played a "catalyst" role.
Is there room for gold prices to rise further in the future? Analysts interviewed said that for now, with the recovery of the global economy and inflation expectations, it may further strengthen the attractiveness of gold as a safe-haven asset.
"For the market outlook, the medium-term target of international gold is expected to see $3,000,000," Zhang Zhongyun said, investors can continue to hold gold to rise.
"Gold prices are indeed at a relatively high level now, but they are expected to hit the integer mark of $3,000 in advance," Zhou Cong said, investors should not blindly chase high, there are profits to reduce positions, investors may wish to wait for a pullback and then enter the market is more appropriate.
(Source: Red Star News)