Another financial institution has adjusted its personal precious metals services.
China Construction Bank announced on June 25th that it will deactivate the function for personal precious metals trading on behalf of the Shanghai Gold Exchange at the end of the day's clearing on July 24th (Friday). The business varieties to be closed include Au99.99, Au100g, PGC30g, Au(T+D), mAu(T+D), and Ag(T+D).
On June 24th, Industrial and Commercial Bank of China also declared that, starting from the end-of-day clearing on July 24th, 2026 (Friday), it will cease the agency business for personal precious metals auction trading on the Shanghai Gold Exchange. The involved contract varieties include Au99.99, Au100g, Au99.95, PGC30g, Au(T+D), mAu(T+D), Ag(T+D), Au(T+N1), and Au(T+N2).
Since the beginning of this year, seven other banks including Postal Savings Bank of China and China Guangfa Bank have also adjusted this business, either suspending it entirely or raising margin requirements.
On the global market, precious metals showed divergent performances on June 25th. At the close, COMEX gold futures rose 0.78% to $4,040.10 per ounce, while COMEX silver futures fell 0.38% to $58.290 per ounce.
As of June 26th, spot gold had fallen below $4,000 to $3,999.04 per ounce, and spot silver was trading at $56.53 per ounce.
In terms of domestic gold jewelry prices on June 26th, Lao Feng Xiang was quoted at 1,220 yuan per gram, Chow Tai Fook at 1,222 yuan, Chow Sang Sang at 1,227 yuan, Lao Miao Gold at 1,226 yuan, and Zhou Liufu at 1,227 yuan.
Current State of Gold Market Sales
What is the sales situation in the gold market? At the Shuibei Gold Market in Shenzhen, Guangdong, customer traffic remains strong, with many consumers entering stores to make inquiries. However, unlike the scenes of queuing and rush buying seen earlier in the year, the current market sentiment is dominated by caution. While many enter shops to ask about prices, actual transactions are fewer.
A store manager for a jewelry brand in Shenzhen, Guangdong, reported that the store's sales have declined by 30% to 40% year-on-year. The impact of gold price fluctuations is significant, leading customers to be more cautious when purchasing jewelry.
Faced with the continued volatility in gold prices, many consumers have adopted a more conservative mindset. The prevailing psychology is "buying on the rise, not on the fall," with many hoping to wait for a further price correction before making a purchase.
Market Rationalization and Industry Upgrade
Regarding the structural changes in the current gold market, industry insiders note that the price correction is accelerating a rational return and industrial upgrade in the gold consumption market.
Song Jiangzhen, Director of the Guangdong Southern Gold Market Research Center, explained that consumers are becoming more rational. During the price decline, a portion of the group that was chasing gold price trends to buy jewelry has been filtered out. The remaining group, which has a rigid demand for gold jewelry, is less sensitive to price and pays more attention to brand, craftsmanship, and aesthetic appeal.
Outlook for Gold Prices
What is the future direction for gold prices? Dong Ximiao, Chief Economist at Zhaolian and Executive Director of the Shanghai Finance and Development Laboratory, believes that in the short term, a rapid recovery in gold prices will be difficult, and prices are expected to maintain a volatile and weak pattern. The Federal Reserve's "hawkish" expectations and a strong US dollar remain key variables suppressing gold prices. There is still room for the market to revise upward its pricing for interest rate hikes within the year, and gold prices may further decline.
However, the underlying logic supporting a gold bull market in the medium to long term has not disappeared. Some analyses suggest that, firstly, the momentum of global central banks' continuous gold purchases remains strong, with net purchases in the first quarter reaching a new high in over a year. Secondly, macro-level changes such as the global trend of de-dollarization, the restructuring of the geopolitical order, and intensifying US fiscal pressures are still deepening. The demand for diversification of reserve assets among countries is irreversible.
A research report from Cinda Futures suggests that looking ahead, the short-term direction of gold prices will depend on the cross-verification of two lines. The first is the outcome of negotiations following the unsigned US-Iran agreement and the subsequent actual progress in the resumption of navigation in the Strait of Hormuz. If the agreement is implemented smoothly, it may provide phased support for gold prices. The second is whether the market's already priced-in expectations for Federal Reserve rate hikes can be verified by subsequent data and if there is room for revision. The upcoming US June CPI, core PCE data, and successive statements from Federal Reserve officials will be a key window to test whether the current "hawkish" pricing is excessive. If the data unexpectedly declines, the excessively "hawkish" pricing could be revised, potentially allowing gold prices to rebound.
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