Domestic brand gold jewelry prices are nearing 1,200 yuan per gram, setting a new low for the year.

Gold prices have continued their decline. Following the drop in the London spot gold price below the key support level of $4,000 per ounce, the listed prices for gold jewelry at major domestic brand retailers have also weakened in tandem.

On the morning of June 25th, the prices for pure gold jewelry at several major gold and jewelry brands were lower than the previous day. Chow Tai Fook, Chow Tai Seng, and Tse Sui Luen quoted 1,222 yuan per gram, down 16 yuan from the day before; Lao Feng Xiang quoted 1,215 yuan per gram, down 26 yuan; Chow Sang Sang quoted 1,221 yuan per gram, down 19 yuan.

The listed jewelry prices from major brands have also reached their lowest point this year. A review of public data shows that in late January, the highest listed price for pure gold jewelry at several brands exceeded 1,700 yuan per gram. In comparison, the current listed prices have fallen by nearly 30%.

However, the drop in gold prices has not triggered a surge in consumer purchases.

Visits to several brand gold stores in Shanghai revealed that the shops were relatively quiet. Conversations with counter staff indicated that despite the recent continuous decline in gold prices, sales of gold jewelry have not seen a significant increase. "There have been a few people coming in to inquire over the past few days, but no one has placed an order yet. Most are still in a wait-and-see mode," one salesperson noted, explaining that many consumers tend to "buy when prices rise, not when they fall." Once gold prices drop, consumers often become more cautious. Additionally, the current period is not the traditional peak season for gold consumption. Combined, these factors make the lack of strong sales unsurprising.

In contrast to the cautious stance in the retail sector, upstream wholesale buyers have been actively replenishing their stocks amid the price correction.

According to a report, during the previous period of sustained high gold prices, companies strictly controlled their inventory and were hesitant to purchase. Recently, with the retreat in gold prices, companies have accelerated their restocking pace. Buyers replenishing stock at the Shuibei wholesale market are generally adopting a strategy of small-volume, high-frequency purchases to manage the risks posed by gold price volatility.

Regarding the current structural changes in the gold market, industry experts believe that the price correction is accelerating a rational return and industrial upgrade within the gold consumption market.