Recent gold price fluctuations have been like a roller coaster ride. In mid-September, the price of gold jewelry in China briefly exceeded 600 yuan/gram. However, during the National Day holiday, international gold prices declined, resulting in a downward adjustment in the price of gold jewelry in China. But with the geopolitical tensions escalating, international gold prices rebounded, leading to uncertainty about the current price of gold jewelry in China and whether it is a good time to buy.
At the Shuibei market in Shenzhen, which is the largest gold jewelry trading center in China, the prices of gold jewelry in brand stores are relatively high compared to other stores. For example, the price of gold jewelry at a China Gold store in the Dongmen Old Street area of the Luohu district is 499 yuan/gram, and at a store in the Shuibei Jinxiangfu market, the price is 465 yuan/gram. It can be seen that the gold prices in the Shuibei market have increased recently.
A month ago, on September 15th, a reporter visited a Lufu Jewelry store in the Shenzhen University City and found that the price of gold jewelry was 614 yuan/gram, which exceeded 600 yuan/gram at that time. The store staff mentioned that the price for selling gold jewelry is around 450 yuan/gram due to additional costs, but gold jewelry is mainly used for personal use, while gold bars are more suitable for investment.
It is worth noting that on October 16th and 17th, the COMEX gold settlement price showed a downward trend, and as of the time of writing, the COMEX gold price decreased slightly by 0.36% to $1927.3 per ounce.
On October 17th, when visiting the Chow Tai Fook and Chow Sang Sang stores in the Shaxia Times Square, the price of gold jewelry at Chow Tai Fook was 599 yuan/gram and at Chow Sang Sang was 579 yuan/gram. Although the prices have dropped compared to before, they are still relatively high.
The main reason for the recent fluctuations in gold prices is attributed to the better-than-expected U.S. economic data, which increased concerns of a Fed rate hike and led to a rise in U.S. bond yields, suppressing the performance of gold. However, in the medium to long term, the intensifying geopolitical conflicts and central banks increasing their gold reserves may create potential growth opportunities for gold.
In addition, the approval of the first batch of gold industry stock ETFs in China has also attracted attention to gold stocks. Huaxia Fund and Yongying Fund were the first to win approval for these ETFs, and this has further boosted market interest in gold stocks.
China Galaxy Securities pointed out that these newly approved ETFs are stock index products that cover listed companies in the gold industry chain and offer more flexibility compared to traditional gold investments. Multiple fund managers, including Jiashi, Guangfa, and ICBC Credit Suisse, have also applied for similar products, which are currently awaiting approval. It is expected that more similar products will be available in the future.
Regarding the recent volatility in gold prices, it is noted that there is short-term uncertainty, but there is still good investment value in the long term. Investors should choose suitable investment channels and buy on dips to avoid chasing after high prices.