Gold prices fall to one-year low as Chinese people resume shopping

recently yellowgold price As prices fell, a large number of consumers flocked to the Shenzhen Shuibei Gold Market. Passenger traffic increased again this weekend and reached 60,000. On the 31st, many netizens said that they could not go in even if it was crowded, and jokingly called Shuibei Market a “vegetable market”.

As the market closed on October 30, international gold and silver prices fell sharply, with gold falling to its lowest level in a year. Spot gold fell below US$3,900 and settled at US$3,875.19 an ounce, down 3.61%. If calculated based on the market price of Au99.99 on the Shanghai Gold Exchange this yearspring Festival At present, based on the traditional marriage “hardware” configuration of about 70 grams, the cost of a set of gold raw materials is about RMB 87,000. Today, with the same weight, the raw material cost is approximately RMB 58,300, allowing a saving of approximately RMB 28,700 (approximately US$4,266).

Xiaoxiang Morning News reported that Zhang Wenjing, the person in charge of marketing planning of Shuibei, said that this time it was a “global explosion of traffic” and the entire business district was under pressure. In terms of passenger flow structure, about 70% are “people who use funds” and 30% are “people who allocate funds”. In the jewelery category, wedding accessories, hardware, plain ring bracelets, and baby gold locks are the main consumers, releasing the backlog of wedding demand for half the year; Among investment products, purchase volumes of gold bars, small gold pods and investment gold valued by grams have increased.

The huge influx of consumers also gives consumers an opportunity to bargain. The Daily Economic News reported that the buying and selling prices of gold at many Shuibei traders are somewhat different from the listed market prices, and there will be a difference of a few dollars in the quoted price. When inquiring about the purchase of gold bars, the shop owner first quoted a price of 875 yuan/gram, and after bargaining, the price was reduced to 869 yuan/gram.

According to a cover news report, many consumers also come to Beijing Kaibai Gold Market to shop. Even on working days, there is a crowd of people in front of the gold counter. A trader told Cover News that after the price of gold fell, the store’s sales had almost doubled compared to the previous month.

The outside world is most concerned about the future trend of gold prices. According to the Daily Economic News, Zeng Gang, president of Tianfu Lian Financial Research Institute, analyzed that in the short term, gold prices are still dominated by monetary policy expectations and the trend of the US dollar. Until inflation data calms down significantly and expectations of a rate hike by the Federal Reserve subside, the upside in gold prices may be limited, and prices are likely to fluctuate widely at lower levels.

However, Zeng Gang also pointed out that due to two consecutive months of decline and extreme short-term decline, a rebound may occur at any time after technical oversold conditions. In the long term, many of the fundamental arguments supporting gold have not completely disappeared, including: global geopolitical uncertainty, high sovereign debt, central bank reserve diversification and de-dollarization trends, which will still provide medium and long-term support.

Zeng Gang believes that this period of sharp rise and fall also reminds that gold not only does not rise but never falls. The last leg blew away many expectations, and the price takes time to digest. The long-term trend of gold prices will shift from sideways to bullish consolidation and re-valuation.