Per edited Bilu Name

The "skyrocketing" price of gold could not stop the enthusiasm of consumers, and the gold store jewelry sold out.

Recently, the international gold price has risen significantly. Last Thursday, May 5, under the influence of multiple factors such as the Federal Reserve's announcement of interest rate hikes, the international gold spot price once stood above $4,2080 an ounce during the session, hitting a record high.

According to CCTV Finance on May 5, after the reporter's visit, it was found that the price of gold jewellery in many stores in Beijing has risen rapidly recently, approaching 8 yuan / gram.

A number of staff told reporters that the recent rapid price increase, many consumers felt caught off guard and regretted not starting in time. The luckier consumers bought gold when the price was slightly lower, and in just five months, the price per gram of gold jewellery rose a lot. Some clerks even said that sometimes it rose by 5 yuan / gram in one day.

Industry insiders believe that the recent rise in gold prices is mainly affected by multiple factors.

Sales are hot, approaching 600 yuan per gram

According to CCTV Finance reported on May 5, in a gold jewelry sales store in Beijing's Xicheng District, the counter displays a variety of gold jewelry, and many consumers are buying gold jewelry in front of the counter.

The staff told reporters that the price of gold has risen all the way recently, and the price of gold jewelry in stores has risen to 572 yuan per gram. Despite the price increase, consumers' enthusiasm for buying has not been greatly affected, and consumers are worried that the price will continue to rise, so they hurry up to buy gold at this time.

The pricing of gold jewelry is equal to the base price of spot gold plus processing fees, and the reporter found that the price of gold jewelry in many stores in Beijing has risen rapidly recently, approaching 600 yuan / gram. The data shows that the spot gold price has risen significantly since November last year, and despite the correction in February this year, the latest price today is still up 11% compared to the beginning of November last year.

The clerk of China Gold Beijing Oriental Xintiandi store said: The price of gold rose particularly fast in the two or three months after breaking through 550 yuan / gram, and now it has exceeded 580 yuan / gram, sometimes up 7 yuan / gram in one day.

Some consumers in Beijing said that they had thought about whether to buy some gold and prepare for some appreciation, but at that time they felt that the price of gold was quite high, so they never bought, and as a result, they did not expect that the price of gold has been rising recently.

A number of staff told reporters that the recent rapid price increase in gold jewelry has caught many consumers off guard and regretted not starting in time. The luckier consumers bought gold when the price was slightly lower, and in just five months, the price per gram of gold jewellery rose a lot.

In this regard, Zhang Yingying, deputy director of COFCO Qidefeng Commercial Derivatives Department, said that the speed of acceleration is mainly because the basic gold price of the international gold price has accelerated, and not only the speed of rise, but also the rise in the short term is very large, prompting gold stores selling jewelry to quickly raise prices.

The repurchase proceeds of 100 grams of gold bars are nearly 10,000

According to CCTV Finance reported on May 5, in many gold retail stores in Shenzhen Shuibei, the reporter found that in addition to consumers who came to select gold jewelry, there were also many consumers who came to the repurchase window to cash out with the investment gold bars and gold jewelry they had previously purchased.

Consumer Mr. Zhang: Around March 2021, I bought a 3-gram gold bar, and the price of gold at that time was a little more than 100 yuan per gram, and now the price of gold has risen by about 350 yuan per gram, so I thought about selling it, and the income was about 100,9800 yuan, which is still relatively satisfactory.

The person in charge of a gold recycling company told reporters that since March this year, affected by the continuous rise in gold prices, his company's recycling business has grown significantly, especially the recycling volume of investment gold bars has doubled.

An Dixu, general manager of a gold recycling enterprise in Shenzhen, Guangdong: In April, our orders increased by 4% compared with the previous year, which is a large increase. The first week of May is estimated to be the same as in April, based on the number of orders on these days. The gold recycling category is mainly precious metal wealth management gold bars sold by banks and gold jewelry sold by various brands.

In addition to recycling and realization, many consumers are optimistic about the subsequent performance of gold prices and choose to trade in old ones to continue to hold. As a result, the trade-in business of many gold stores has increased significantly.

China's central bank increased its holdings of gold for six consecutive months

On May 5, the central bank released data showing that China's gold reserves at the end of April were 7.4 million ounces, an increase of 6676,26 ounces from the previous month, the sixth consecutive month of incurring holdings. Since the PBOC began its current round of gold purchases in November last year, the PBOC's gold reserves have increased from 11.6264 million ounces to 4.6676 million ounces at the end of April this year, with a cumulative increase of 412.<> million ounces.

Central banks and other institutions bought 5 tonnes of gold in the first quarter, up 5% y-o-y, according to World Gold Council data on May 228. Looking ahead to 176, investment demand for gold will be the protagonist. The Association believes that gold investment demand will continue to grow healthily this year, while gold manufacturing demand, including jewellery and technology gold, will remain relatively stable. Global central banks are likely to continue to buy gold aggressively in 2023, although purchases may be lower than the record set in 2023. In addition, global mine production and recycling are likely to grow moderately.

According to the Economic Daily on May 5, Wang Lixin, CEO of the World Gold Council China, said that China's bar and coin investment demand has increased significantly. Q9 bar and coin sales totalled 66t, up 34% y-o-y and 7% qoq, the strongest Q2019 demand since <>, driven by improved pandemic containment policies and widespread attention to the surge in gold prices.

"The next two quarters are the traditional low season for gold demand, but physical investment demand for gold is likely to outperform the same period in the second quarter of this year." Wang Lixin believes that on the one hand, the sustained recovery of China's economy may be conducive to the overall consumption growth of gold; On the other hand, global geopolitical and financial market risks remain high, and investors may pay more attention to safe-haven assets such as gold against the backdrop of a historically high propensity for household savings and central banks continuing to buy gold.

"On the whole, continue to be bullish on gold in the medium and long term." Zhao Xiangbin, chief strategist of BRICS Connect, believes that there are three main factors supporting gold prices in the future: first, the US dollar will continue to fall lower due to the gradual approach of the Fed's interest rate cutting cycle, which is good for gold prices; Second, the complexity of the international geopolitical situation will lead to an increase in long-term safe-haven purchase demand; Third, the process of "de-dollarization" in many countries around the world has accelerated, and the value of gold will become more and more prominent in this process.

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