Gold prices continued to climb during the Spring Festival holiday. On February 26, the international gold price once again breached the $5,200 per ounce mark, representing an increase of over 3% compared to pre-holiday levels. Domestic gold jewelry prices followed suit, with the quoted price for pure gold jewelry from major brands such as Lao Feng Xiang and CHJ Jewellery generally exceeding 1,560 yuan per gram. The ripple effect of price increases may expand further. Sources from sales channels indicate that brands including CHOW SANG SANG and CHOW TAI FOOK will raise prices for some fixed-price items in March. Currently, market sentiment is largely bullish on future gold price trends. However, for the gold jewelry industry, which relies heavily on end-consumer demand, the pressure from high gold prices somewhat suppressing demand remains a persistent challenge.
Gold jewelry brands are once again raising prices in response to the surge in international gold prices. A staff member from CHOW TAI FOOK in Shenzhen confirmed that a price increase is scheduled for mid-March. This move was anticipated, as the last unified price adjustment for fixed-price products occurred when gold was priced around 1,400 yuan per gram. By February 26, CHOW TAI FOOK's jewelry gold price had already reached 1,570 yuan per gram. Fixed-price products typically offer higher profit margins compared to weight-based priced items. For instance, a Palace Museum collection bracelet priced at 65,800 yuan and weighing 28 grams equates to a unit price of 2,350 yuan per gram. Staff at a CHOW TAI FOOK store in Anhui province advised potential buyers to act quickly, noting an upcoming price hike in early March that could push the bracelet's price to around 89,000 yuan, with discounted prices potentially rising from over 50,000 yuan currently. This would bring the unit price per gram for this product above 3,000 yuan.
Additionally, LAOPU GOLD issued a notice announcing a product price adjustment effective February 28, 2026, with final prices to be determined by actual online and offline price tags. A staff member at a CHOW SANG SANG store in Guangzhou directly stated that prices would increase in March. Beyond major brands, jewelry merchants in Shuibei, who typically have fewer fixed-price items, are also raising their craftsmanship fees due to operational pressures. A gold jewelry retailer in Shuibei, Shenzhen, stated that starting today, the craftsmanship fee for their 5D (accessory) series and 5D (micro-hard gold) series products would increase by 5 yuan per item. The reason cited was market changes and cost adjustments, as sustained increases in international gold prices have driven up production costs, creating significant pressure.
Industry experts suggest this round of price increases is not solely due to rising gold costs. The current wave of price hikes by brand gold stores differs fundamentally from previous ones, with the core driver shifting from simple cost transmission to a systemic restructuring of the industry's pricing model. This signifies the gold jewelry industry's accelerated transition from the traditional weight-based pricing model towards a logic based on "brand premium plus craftsmanship value." Fixed-price products bundle craftsmanship fees, design copyright fees, and brand premiums, significantly enhancing brand profitability, with gross margins potentially reaching 30% to 40%, far exceeding the 10% to 20% for weight-based products. This transition reflects a shift from passive value addition reliant on gold price appreciation to active growth driven by brand operations and cultural value enhancement.
High and volatile gold prices are profoundly impacting consumer psychology regarding gold jewelry purchases. The market shows a clear divergence in sentiment, split between buyers chasing the rally ("the higher it goes, the more they buy") and a cautious faction adopting a "rational wait-and-see" approach. A merchant in Shuibei, Shenzhen, reported significant foot traffic before the holiday but noted price confusion and high levels, adding that consumers were purchasing lighter-weight items, leading to high visitor numbers but lower overall revenue. The Spring Festival, a traditional peak season for gold consumption, sees concentrated release of rigid demand for weddings and gifts. According to the latest data from the China General Chamber of Commerce, the average daily retail sales of gold, silver, and jewelry products during the holiday increased by 33.4% year-on-year.
Interestingly, some gold brands continued promotional efforts after the holiday. For example, while adjusting prices, LAOPU GOLD launched promotions like "100 yuan off for every 1,000 yuan spent" and "gifts with purchase" to maintain consumer interest. Observations indicate that queues often form outside LAOPU GOLD stores before price adjustments, with some customers reportedly waiting over eight hours recently. Conversely, high gold prices have deterred customers at some other brand stores, leaving them relatively empty.
The current gold jewelry market exhibits a split personality, co-existing "buy-on-the-rise" behavior with rational观望. This reflects a deep division in consumers' perception of gold's value. On one hand, some consumers, driven by price increase expectations, rush to buy, with some LAOPU GOLD stores even experiencing stock shortages, motivated by a consensus on brand value and craftsmanship premium, perceiving pre-hike purchases as cost-effective. On the other hand, many consumers consider fixed-price product markups too high, labeling them unaffordable or a rip-off, and choose to wait cautiously. This divergence precisely confirms that gold consumption is evolving from a single wealth-preservation logic towards diversified value judgments. While seeking asset preservation, consumers are also becoming more prudent in assessing the reasonableness of paying premiums for design and brand.
Reviewing gold price movements year-to-date, the London spot gold price first soared to a record high above $5,600 per ounce. It then peaked on January 29 and retreated, consolidating around $5,000 per ounce. During the Spring Festival, gold prices experienced a rollercoaster ride, recording a strong four-day gaining streak after two consecutive declines. Year-to-date, the international gold price has increased by over 18%. Independent observers suggest that gold prices are currently oscillating at high levels with a strong bias. In the short term, international gold prices are expected to maintain high volatility, with pressure noted above $5,400 per ounce. The medium-term uptrend remains intact, while the duration and structural scope of the long-term upward trend require further assessment. For precious metal jewelry, although the rapid price rise has paused, prices remain at historically high levels. The high cost continues to pose significant sales and operational pressures for brands.
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