Gold and silver prices have been seesawing recently, with heightened volatility capturing the attention of many consumers and investors. On the morning of June 16th, a visit was made to China's largest gold and jewelry industry cluster—Shuibei in Shenzhen.

At the scene, foot traffic in Shuibei that morning was notably lower compared to usual times, with some areas seeing very few customers. A merchant informed that weekend traffic tends to be higher, while weekday mornings generally see fewer visitors.

Regarding gold consumption, industry insiders noted that recent price swings have left consumers in a wait-and-see mode. They also pointed out that this period is traditionally a seasonal low point for the year.

A key observation is that some gold buying prices offered by merchants in Shuibei are significantly below the broader market rate. One merchant stated their buying price was 920 yuan per gram, adding, "My price is actually on the higher side; some merchants are only offering 900 yuan per gram."

Contrasting with the previous period of continuous gold price increases when merchants were willing to pay premiums, it was observed that against the backdrop of recent sharp international gold price fluctuations, some Shuibei merchants have significantly lowered their buying prices to mitigate potential losses.

Market data shows that as of the close on June 16th, the main gold futures contract on the Shanghai Futures Exchange was priced at 941.72 yuan per gram. The buying quote from Shuibei material supplier Rongtongjin was 934.14 yuan per gram. However, there is a wide disparity in buying prices among different merchants: some quoted 922 yuan per gram, while others offered 938 yuan per gram. A merchant on-site mentioned, "There are also those buying at 900 yuan per gram."

"The 938 yuan per gram buying price has only recently risen. Gold prices have been fluctuating very frequently lately, so it's better to sell items promptly and secure the cash," one merchant remarked.

On the morning of June 16th, a sudden heavy rain in Luohu District left the halls within Shuibei particularly quiet, with hardly any customers. It wasn't until the afternoon that citizens gradually began entering stores to browse gold jewelry and bars.

Interviews with several merchants revealed differing views. Some staff indicated that the sparse customer flow wasn't strongly linked to gold price movements, stating, "Whether prices rise or fall, there will always be clients coming to purchase. Generally, there are fewer consumers in the mornings, and more in the afternoons. Also, today isn't a weekend, so foot traffic is even smaller."

Observations showed that morning consumers in Shuibei were mostly concentrated in sales areas for smaller-weight daily gold jewelry like necklaces and bracelets, while the gold bar sales area was relatively quieter.

Other merchants offered a different perspective, noting, "It's normal for there to be fewer people now. Coupled with the price volatility, many consumers with purchasing power are adopting a wait-and-see approach." Another gold jewelry merchant mentioned that peak consumption periods are typically concentrated during summer/winter vacations and various holidays.

Notably, compared to the situation around the end of 2025 when almost every store had recruitment notices posted, the number of stores in Shuibei displaying such notices has significantly decreased. "We're also hiring less frequently now," one merchant stated.

At the end of January this year, domestic gold prices hit a record high, with the main Shanghai gold futures contract price briefly climbing to 1258.72 yuan per gram. The continuous price surge fueled a "gold rush," attracting numerous investors. However, prices have since gradually retreated.

"I bought in after the Lunar New Year holiday, purchasing 14 grams of gold jewelry at over 1100 yuan per gram," one consumer shared, expressing regret about buying at a peak out of fear prices would keep rising. The consumer has since continued to average down by purchasing bank gold accumulation products.

"Now I buy on dips. I added more last week when the price fell to over 800 yuan per gram, aiming to slowly lower my average cost. I haven't broken even yet," the consumer said, adding a plan to hold long-term or pass it on for future use.

Another investor mentioned having sold out their position amid the market swings, lamenting, "I bought gold at 1050 yuan per gram, and each time I sold at a loss, the price would go up."

It is worth noting that after a previous consecutive decline, the international spot gold price has risen for three consecutive trading days. Galaxy Futures precious metals researcher Yuan Zheng explained that the overall market shift is primarily driven by substantive progress in US-Iran negotiations.

Regarding whether gold prices can return to previous highs, Yuan Zheng stated it depends on the precise alignment of three key variables: signals released from Federal Reserve Chair Kevin Warsh's press conference and subsequent monetary policy implementation, the actual transit status of the Strait of Hormuz, and whether upcoming US macroeconomic data (Non-Farm Payrolls, CPI) shows signs of marginal weakness.

Yuan Zheng indicated that the earlier these three variables align, the faster capital will flow back. If the three variables remain in a prolonged tug-of-war, gold prices will likely fluctuate repeatedly between $4300 and $4600 per ounce, with capital flows exhibiting high-frequency, back-and-forth characteristics. For ordinary investors, the most rational strategy at present is to remain patient until short-term data verification and policy direction become clearer, and then begin building positions in batches upon clear signals of declining real interest rates, rather than chasing the bottom by buying on dips before the market bottom is confirmed.