Close-up: Gold Prices Oscillate at High Levels, Shenzhen Shuibei Market Remains Bustling

In recent times, international gold prices have remained high with fluctuations, but on March 16, gold prices briefly fell below $5,000 per ounce, leading to a decrease in jewelry prices accordingly.

On March 16, a reporter visited the Shuibei market in Shenzhen and observed that despite it being a weekday, the market was still bustling with activity. That day, the gold price for jewelry in Shuibei was generally around 1,286 yuan per gram. Some merchants stated that many consumers are choosing to buy gold while prices are rising. Recently, because gold prices have dropped slightly, there is a more bearish sentiment, and customers are more cautious.

“However, since March, sales of gold jewelry have remained roughly the same as before the Spring Festival. Actually, we don’t want to see gold prices surge sharply; we hope they stabilize quickly,” said a merchant at Shuibei Gold Exhibition Plaza. “Regarding investment gold, when the Middle East situation just escalated, there were many people buying and selling investment gold bars. Recently, fewer investors are buying gold bars.”

Some consumers mentioned that since the escalation of the Middle East situation, their friends have been talking about gold. Contrary to many expectations, gold prices have not surged or hit new highs. “Although gold prices are still high, I think gold can preserve value, and physical gold bars feel more reliable.”

Meanwhile, the branded gold market has recently undergone a price adjustment, with several well-known brands raising prices on their products, resulting in a significant overall increase. During a visit to Shuibei market, the reporter found that some jewelry stores also launched their own fixed-price gold jewelry, which are relatively cheaper compared to large brand offerings. The store manager explained, “Brands enhance added value through product design and craftsmanship innovation to meet consumers’ demand for personalized and quality lifestyles. We also offer consumers a wider range of products.”

Most consumers during the visit remained confident about the trend of gold prices. Industry insiders believe that the recent decline in gold prices is mainly due to a sharp cooling of the Fed’s rate cut expectations, a strengthening of the dollar and U.S. Treasury yields, and the closing of high-profit positions, all resonating together. Additionally, the phased easing of risk aversion in the Middle East has put pressure on non-yielding assets like gold. However, according to the World Gold Council, net inflows into global gold ETFs reached $5.3 billion in February, marking the ninth consecutive month of inflows and the strongest start to the year ever. As gold prices continue to rise and boost valuations, the total global gold asset management (AUM) has reached a record high of $701 billion, with global holdings reaching 4,171 tons. Moreover, international investment banks generally remain optimistic about the long-term trend of gold prices.