In local time on Thursday, February 27th, at the New York closing bell, spot gold fell by 1.34% to $2,877.24 per ounce, fluctuating downwards throughout the day, predominantly in a declining state. In China, domestic gold prices also took a dive, with brands like Chow Tai Fook, Lao Feng Xiang, and others seeing the price of 24K gold plummet from 895 yuan per gram to 886 yuan per gram.
Futures market correlation: COMEX gold broke below the $2,930 mark, as gold futures dropped by 1.46% to $2,887.80 per ounce.
The prices of gold jewelry in China also saw a significant decline, with Chow Sang Sang pricing their 24K gold jewelry at 876 yuan per gram on February 28th, marking a nightly drop of 9 yuan per gram.
This was a decrease from the pricing of 894 yuan per gram just three days earlier on the 25th, resulting in an 18 yuan per gram drop. Compared to the peak of 895 yuan per gram on the 20th, there was a decrease of 19 yuan per gram.
On February 28th, Lao Miao gold jewelry priced their 24K items at 877 yuan per gram, witnessing an 8 yuan per gram drop overnight. Chow Tai Fook priced their 24K jewelry at 880 yuan per gram, experiencing a 6 yuan per gram decline overnight. Likewise, Lukfook Jewelry priced their 24K jewelry at 880 yuan per gram, dropping by 6 yuan per gram overnight. The prices of gold jewelry from these three establishments decreased by 12-15 yuan per gram compared to the peak on the 20th.
The trending topic regarding gold prices continues to dominate the search rankings.
Some netizens do not agree with the term “major gold price drop.” At the same time, there are netizens who are looking forward to the possibility of buying gold jewelry for their families.
According to a report in the “China Youth Daily,” behind the significant fluctuations in gold prices are the results of various complex factors at play. The primary reasons include the uncertainty of the Federal Reserve’s path and some investors choosing to profit take at high levels, leading to technical selling, among others.
Liu Shiyao, a precious metals analyst at Zi Jin Tian Feng Futures, indicated that the LBMA spot gold lease rate, which reflects the balance of physical gold supply and demand, has fallen from a high of 4% to 2%, underscoring a cooling demand for physical gold. The logic of gold pricing will return to being dominated by macroeconomic fundamentals, potentially causing gold prices to fluctuate at high levels in the short term.
Since the beginning of 2025, international gold prices have continued their robust performance from last year, with both London spot gold and COMEX gold futures seeing cumulative increases of over 10%. Many investment institutions predict that international gold prices will break the $3,000 mark, with some even forecasting prices to rise to $3,100.
A report from the World Gold Council released on February 5th stated that in 2025, the purchase of gold by global central banks is expected to continue to dominate, and the demand for gold ETF investments will also become a significant force supporting gold demand. The uncertainties of geopolitics and macroeconomics will be the theme of 2025, further bolstering the demand for gold as a wealth preservation and hedging tool.
The surge in gold prices has sparked a nationwide “gold hoarding frenzy.” Previously, the phenomenon of young people in mainland China buying gold in large numbers has also attracted attention. Many gold shops have been crowded with consumers rushing to buy gold bars, gold jewelry, and scenes of queuing for hours to make purchases.
In a report by the “China Economic Weekly,” Zhou Ting, director of the Want Client Research Institute, pointed out that gold jewelry has a certain investment attribute, or rather, it holds its value better than many luxury brands. However, the part that holds its value is only the gold itself; the premium part does not possess the same value-retaining ability.
“The hot trend of gold jewelry is just a wave that will eventually pass,” she warned, emphasizing that gold jewelry is not the same as gold itself, and the key is to buy what you like.