The price of spot gold (London gold spot) experienced another sharp decline on the morning of June 10, Beijing time, briefly falling below $4,200 per ounce during the session.
As of the latest update, the price was reported at $4,174.57 per ounce, marking a year-to-date decrease of 3.33% and a drop of approximately $1,400 from the year's high point.
Consequently, on June 10, the prices of domestic brand gold jewelry were collectively adjusted downward, with all falling below 1,300 yuan per gram.
Specifically, Chow Sang Sang pure gold jewelry was quoted at 1,277 yuan per gram, a significant drop of 45 yuan from the previous day's price of 1,322 yuan.
Lao Miao Gold pure gold jewelry was priced at 1,283 yuan per gram, down 34 yuan from the previous day's 1,317 yuan.
Lao Feng Xiang pure gold jewelry was listed at 1,276 yuan per gram, a decrease of 40 yuan from the prior day's 1,316 yuan.
On January 29, domestic brand gold jewelry prices had surged to a historical peak of around 1,700 yuan per gram.
On that day, the per-gram prices for Chow Sang Sang, Lao Miao Gold, and Lao Feng Xiang were 1,708 yuan, 1,706 yuan, and 1,713 yuan, respectively.
Compared to the year's high, the per-gram prices for these three brands have now fallen by 431 yuan, 423 yuan, and 437 yuan, representing declines of around 25% each.
Geopolitical and Market Factors
International geopolitical tensions have shifted once more.
According to reports, the United States is conducting a "third round" of strikes against Iran.
It was reported that an Iranian attack in the Strait of Hormuz downed a U.S. military Apache helicopter, with both pilots reported safe, prompting a U.S. response.
Subsequent reports from Iran indicated several explosions were heard near the port of Abbas and the Sirik region in the early hours of June 10, with another explosion occurring on Qeshm Island.
Analyst Perspectives on Gold
One analysis suggests that with the upcoming release of U.S. May CPI data, market concerns that inflation exceeding expectations could reinforce the Federal Reserve's stance on maintaining high interest rates or even raising them are putting pressure on non-yielding assets like gold, as the U.S. dollar and Treasury yields remain elevated.
Furthermore, the Bank of Japan's plan to raise interest rates to 1% and the generally hawkish trend among major global central banks are further diminishing the appeal of precious metals.
Regarding geopolitics, while U.S.-Iran military friction has escalated, the market remains sensitive to the negative chain reaction of "conflict → inflation → rate hikes," and safe-haven sentiment has not provided a significant boost to gold prices.
In the short term, gold prices may continue to trade weakly with volatility until the CPI data is released, with a recommendation for investors to adopt a wait-and-see approach, awaiting guidance from the inflation figures.
In a separate report, analysts from Citigroup suggested that if the Strait of Hormuz were to remain closed until the end of summer, gold prices could potentially fall to $3,500 per ounce.
While gold is traditionally viewed as the ultimate safe-haven asset during market turmoil, the analysts noted that its risks in the near term are extremely high.
"We remain bullish on gold over the long term; however, for investors without wide stop-loss margins and who are not positioned for the long haul, entering the market at this stage carries very high risk," the Citigroup analysts stated.
Comments