On January 5th, the domestic gold market experienced another sharp fluctuation. The unit price of pure gold jewelry from established jewelers like Chow Sang Sang and Gold Supreme surged by 22 yuan within a day, finally stabilizing at 1376 yuan/gram, hitting a recent high. Compared to the early 2025 level of 600 yuan/gram, the current gold price has doubled— a 60-gram gold bracelet now costs 82,000 yuan, a figure that deters many potential buyers.

International spot gold also didn't stay idle, climbing back above $4,400 per ounce with a daily increase of 1.6%. Several factors contributed to this: geopolitical tensions (such as the US military raid in Venezuela), expectations that the Federal Reserve may cut interest rates by 50 basis points in 2026, all fueling gold prices. More importantly, global central banks have been increasing their gold reserves for 13 consecutive months, with China adding 74.12 million ounces over the past year, further strengthening gold’s status as a safe-haven asset.

Interestingly, reactions to this gold price rally vary greatly. An investor in Hangzhou bought gold bars with 600,000 yuan principal, and by the end of the year, their assets had doubled to 1.3 million yuan; a collector in Wenzhou, holding 8 kilograms of gold for 8 years, cashed out at the high point, netting 3.12 million yuan. Those who profit are very happy, but what about ordinary consumers? Most are just watching. Especially those with wedding gold purchasing needs, who can only find ways to buy less or delay their purchases. While the storefronts of gold shops look lively, actual transaction volumes are declining. Major brands are also beginning to tighten their borrowing from banks, clearly easing their liquidity pressures.

On the other hand, with gold prices running at such high levels, hidden risks remain. From January 8th to 14th, Bloomberg Commodity Index will undergo a rebalancing, which could trigger technical sell-offs ranging from $4.7 billion to $6 billion, potentially amplifying gold price volatility. Industry insiders also warn that jewelry contains significant processing fees and brand premiums, which can lead to substantial discounts when reselling later. Gold jewelry is more suitable as a consumer product rather than an investment tool. Therefore, investors should rationally view short-term fluctuations in gold prices, treating gold as a ballast in their asset portfolio, and not expect to make quick profits from it.