Strong Lunar New Year demand fuels China’s gold jewellery market
Retailers slash prices to fuel a buying frenzy among younger investors...
Deep Dive
Chinese gold retailers like Chow Tai Fook offered an 80 yuan ($12) per gram discount ahead of Lunar New Year, sparking a surge in demand despite volatile prices. Investment banks remain bullish as younger consumers drive a shift from traditional gifting to investment. Retailers plan post-holiday price hikes due to rising raw material costs, indicating sustained pressure on the precious metals market.
Why It Matters
This signals a major shift in China's consumer economy, where gold is becoming a key asset for a new generation of investors.