From December 22 to 23, the global precious metals market experienced a collective rally, with COMEX gold surpassing $4,500 per ounce and spot gold breaking the $4,400 per ounce barrier for the first time, marking a year-to-date increase of over 68% and setting new all-time highs.
Domestically, major gold jewelry brands in China raised their prices in line with the record-breaking international gold rally, with many exceeding 1,400 yuan per gram, a significant jump from the previous day. - Chow Sang Sang's pure gold jewelry was priced at 1,403 yuan per gram, up 36 yuan from 1,367 yuan the day before. - Chow Tai Fook's pure gold jewelry also reached 1,403 yuan per gram, a 36-yuan increase. - Lao Miao Gold's pure gold jewelry hit 1,402 yuan per gram, rising 35 yuan.
The surge in prices sparked widespread discussion online. In Wuhan, a major promotional event at a shopping mall's gold counter on December 19 led to long queues, with some customers lining up as early as 7 a.m. To curb scalping, the mall imposed purchase limits of five items per person and a 30-minute shopping window. Some consumers noted that gold products they had purchased in the afternoon had already increased in price before delivery.
The rally extended beyond gold, with platinum and silver also performing strongly. Platinum prices surpassed $2,000 per ounce for the first time since 2008. Domestically, Luk Fook's pure platinum jewelry was quoted at 837 yuan per gram, while Chow Sang Sang's 950 platinum jewelry exceeded 800 yuan per gram.
Silver also saw significant gains, with consumers reporting price jumps on purchased items before delivery. For example, a silver bracelet bought for 494 yuan in the afternoon had risen to over 600 yuan before shipping. A 50-gram silver ingot purchased for 800 yuan ten days ago was resold on Xianyu for 1,188 yuan, yielding a 50% short-term return.
The rapid price increases have elicited mixed reactions. Some wedding planners expressed frustration, noting that platinum prices had risen from just over 300 yuan per gram to 502 yuan in just half a month, increasing the cost of traditional wedding jewelry by a third. Many netizens lamented the unexpected surge, stating that precious metals had become unaffordable.
Analysts attribute the rally to multiple factors. UBS Wealth Management noted that gold has recovered from its October dip and is on track for its best annual performance since 1979. Expectations of continued Fed easing and strong central bank demand for gold as a reserve asset are supporting prices. Dong Ximiao, Chief Researcher at Zhaolian, highlighted rising safe-haven demand and growing market expectations of Fed rate cuts in 2026, which could weaken the dollar and Treasury yields, further boosting gold's appeal.
Long-term structural factors, including sustained gold purchases by global central banks, provide a solid foundation for prices. Institutions remain optimistic about the outlook. Matt Simpson, Senior Analyst at GAIN Capital, sees no immediate signs of a gold price peak, noting historical upward trends around Christmas. Guotai Futures expects platinum and palladium prices to remain supported by supply-demand imbalances and a loose macro environment in early 2026, with platinum likely outperforming palladium.
However, regulators are monitoring short-term risks. On December 22, the Shanghai Futures Exchange introduced measures to curb excessive speculation in silver futures, including trading limits and adjusted fees. GF Futures cautioned that newly listed platinum and palladium contracts in China may face liquidity challenges and heightened volatility due to speculative inflows, with potential short-term corrections as regulatory controls tighten.
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