Gold Jewellery Stocks Extend Declines as Per-Gram Prices Fall Below 1300 Yuan, Q1 Consumption Plummets

Stock News06-24 14:17

Gold jewellery stocks continued their downward trajectory in Hong Kong trading.

At the time of writing, LUK FOOK HOLD (HKEX: 00590) shares were down 4.07% to HK$21.20. CHOW TAI FOOK (HKEX: 01929) shares fell 3.47% to HK$11.42. CHOW SANG SANG (HKEX: 00116) shares declined 2.07% to HK$9.92, while LAOPU GOLD (HKEX: 06181) shares dropped 1.09% to HK$399.60.

The weakness follows a sustained retreat in international gold prices, which has led to significant downward adjustments in domestic retail jewellery prices. The per-gram price for mainstream brand pure gold jewellery has now fallen below the key psychological level of 1,300 yuan.

As of June 23rd, the quoted price for pure gold from brands including CHOW TAI FOOK and Lao Feng Xiang had dropped to a range of 1,265 to 1,277 yuan per gram. This represents a decline of nearly 400 yuan from the peak of around 1,600 yuan seen earlier this year, marking a drop of over 20%.

Analysts at Hongye Futures noted that in the first half of 2026, the structure of gold demand has shifted from being consumption-led to being driven by a dual engine of investment and central bank purchases. The collapse in jewellery demand has been offset by explosive growth in demand for gold bars and coins, while central bank buying has provided long-term support for the price floor.

The firm pointed out that global gold jewellery consumption in the first quarter stood at only 229.7 tonnes. This represents a significant sequential decrease of 137.7 tonnes, or 31%, and a year-on-year decline of 23%, reaching the lowest level since the second quarter of 2020.

The suppressive effect of high gold prices on end-consumer demand has become fully apparent. Jewellery consumption in mainland China plummeted by 37.1% year-on-year to 84.6 tonnes in the quarter.

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