Our reporter Meng Ke
In September, the fall in international gold prices drove the domestic gold jewelry listing prices to continue to decline. In the second half of this month, the retail price of pure gold from mainstream brands dropped to about 1,290 yuan/gram. The price per gram fell by more than 100 yuan from the previous high. The wait-and-see mood in the market has eased. Many consumers seized the price correction window to purchase wedding gold jewelry and daily wear gold products. Coinciding with the "Double Festival" of the Mid-Autumn Festival and National Day, major gold stores have launched promotional activities, and the gold retail market has ushered in the traditional peak season for consumption.
"Securities Daily" reporters compared domestic gold jewelry quotations and found that the pure gold listing prices of mainstream domestic gold jewelry brands have generally dropped significantly from the August high. There is a small price difference between brands due to differences in cost and brand premium. On September 27, Lao Fengxiang's pure gold price was quoted at 1,292 yuan/gram, which was 100 yuan lower than one month ago. On Saturday, Fu's pure gold was quoted at 1,287 yuan/gram, which was 103 yuan lower than one month ago.
This round of centralized price adjustments by brands also officially kicked off the "Double Festival" golden promotions. Major stores relied on their price advantages to launch a variety of preferential activities to activate the holiday consumer market.
The reporter visited the gold counter in the mall and learned that the mainstream promotion methods include instant discounts on every gram of gold, discounts on full amounts, and depreciation fee reduction when exchanging old gold for new ones. For example, Caibai Jewelry has launched an exclusive event for the golden autumn, setting up tiered full discount benefits to adapt to different consumer needs; the old Golden Palace Central store has launched a limited-time benefit. From September 19 to 27, consumers can enjoy 100 yuan off for every 1,000 yuan spent in the store and 10 times the points in the mall. The discount activities have attracted a large number of consumers to shop in the store.
The drop in gold prices combined with holiday promotions has effectively boosted end-user consumer confidence, with both the demand for weddings and the consumption of young people seeking to please themselves picking up. "With the price per gram falling by more than 100 yuan, the purchase cost of a set of wedding gold jewelry of about 50 grams can be saved by thousands of yuan compared with the high point one month ago, which has greatly stimulated the purchasing intention of people preparing for marriage." A salesperson at the Chow Tai Fook counter at Lize Tianjie Shopping Center told reporters. According to him, the customer flow to stores for consultation, trial fitting and ordering has continued to increase recently. Most consumers will compare the gold price trend in advance and specifically use the "Double Festival" promotion node to purchase the "three golds" and "hardware" for weddings. In addition to the immediate needs for weddings, the demand for gold among young people continues to increase. The sales of small gold jewelry such as lightweight pure gold pendants, bracelets, and accessories are eye-catching, becoming a new growth point for holiday consumption.
Regarding this periodic correction in gold prices, Liang Yonghui, deputy general manager of Shandong Zhaojin Gold and Silver Refining Co., Ltd., analyzed in an interview with a reporter from Securities Daily that the core reason is that the resilience of U.S. economic data exceeds expectations, and the market has raised expectations that the Federal Reserve will maintain high interest rates or even raise interest rates again. In addition, the role of geopolitical conflicts on gold prices has shifted from "direct hedging" to indirect transmission of "oil prices-inflation-interest rates", and safe-haven buying has been suppressed. The gold price has continuously surged higher in the early stage and accumulated a large number of profit-making orders. High-level bulls have concentrated on liquidation, which is combined with a periodic fall in the risk aversion premium, which together drives the gold price to a periodic downward trend.
Looking forward to the market outlook, Liang Yonghui believes that the short-term gold price will still maintain a wide range of fluctuations, the medium and long-term rising foundation has not been destroyed, and the gold price center still has room for improvement.
