Recently, international gold prices have fluctuated violently, leaving the "roller coaster" market, and domestic gold prices have also shocked greatly. What impact will fluctuate gold prices have on the market?

The price of gold suddenly shocked

Expert: Gold is still strong as a safe-haven asset

Since the beginning of this year, gold prices have been in a "sky" market. In the past seven trading days, international gold prices have successively risen past four integer marks: US$3,200, US$3,300, US$3,400 and US$3,500 per ounce, setting a record high.

On April 22, the prices of gold jewelry from multiple brands in China also hit a new high. The prices of gold jewelry from many brands such as Chow Tai Fook, Luk Fu Jewelry, and Lao Fengxiang once reached 1,061 yuan/gram.

However, around 22:00 on April 23, Beijing time, international gold prices suddenly plunged, and the main contract of New York gold futures fell by more than 4%, falling below the $3,300 mark. On April 24, international gold prices rebounded sharply, but fell again on the 25th. As of press time, New York gold futures had fallen by more than 1.3%, and spot gold fell by more than 1.6%, losing to $3,300 again.

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Domestic physical gold prices also fluctuate. As of 8 p.m. on April 23, the gold price in Shenzhen Shuibei market has fallen from 837 yuan per gram the previous day to 796 yuan, a drop of more than 40 yuan. Some merchants introduced that after the gold price fell back that day, the deserted shops the day before also started queuing, and the heavy gold bars were also out of stock and needed to queue up for reservations. The prices of gold jewelry from multiple brands in China have also begun to fall, with Zhoushengsheng's gold jewelry price being 1,048 yuan per gram, down 32 yuan per gram from the previous day, with the highest daily decline.

According to Beike Finance, Sun Enxiang, head of wealth financial planner of Paipai.com, said that the recent short-term dip in gold prices has been affected by multiple factors. First, the price of gold as a safe-haven asset is negatively correlated with the US dollar trend. Recently, the strengthening of the US dollar index has directly weakened the investment attractiveness of gold; second, Federal Reserve Chairman Powell made it clear that he would continue to maintain a wait-and-see position, reducing the market's expectations of policy shifts and further hitting the confidence of gold bulls; third, global geopolitical tensions have eased, which has also led to some safe-haven funds flowing out of the gold market.

"In addition, after many consecutive days of gold prices, some investors chose to take profits, and technical selling has also amplified market volatility and accelerated the short-term decline in gold prices ." Sun Enxiang said that recently, the moderate signals released by senior US government officials on tariff issues have also put some pressure on gold prices.

Cinda Futures Research Report believes that the gold price surged too quickly in the early stage, and short-term indicators show that some longs took profit and left the market, and the gold price may face technical adjustments .

Dong Ximiao, chief researcher of China Merchants Union and deputy director of Shanghai Financial and Development Laboratory, said in an interview with reporters that in addition to being affected by tariff news, international gold prices have set new highs, and there is a possibility of a sharp drop in the short term. However, he believes that due to the global instability and uncertainty factors in the future, gold as a safe-haven asset is still strong .

According to Shenzhen Business Daily, "From the medium- and long-term perspective, I am still optimistic about the medium- and long-term trend of gold." Wu Zewei, a special researcher at Sushang Bank, pointed out in an interview with reporters that the last time the international gold price fell by US$200 in a short period of time occurred in early April, when the international gold price fell from around US$3,150/ounce to around US$2,950/ounce. Now, early April is actually a rare time to buy at the bottom. This round of gold prices fell rapidly, and although there are factors that ease the Sino-US trade war, the concentrated stop-profit profits cannot be underestimated. As international gold prices fall back to near the 10-day line, there may be bottom-buying funds that have been bought in batches .

Many gold bars on the counter in Shenzhen Shuibei were sold out

Merchants raise margin

In the Jinzhan Jewelry Market in Shuibei, Shenzhen, the reporter learned that gold prices fluctuated violently in the past two days. In order to avoid risks, merchants raised the margin for consumers to purchase investment gold bars .

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Ye Zuogeng, a merchant at Shuibei Jinzhan Jewelry Plaza in Shenzhen, Guangdong: It will involve some transactions and breaking contracts. For example, those who paid a deposit at 830 yuan/gram before, the deposit may only be 20,000 yuan. He bought 1 kilogram of gold bars for 830 yuan/gram, but it fell below 800 yuan/gram on the 23rd, which is equivalent to his loss of 30,000 yuan. If he breaks the contract, he can do nothing about this batch, and the remaining losses may be subsidized. So now Shuibei recommends buying 1 kilogram of gold, with a margin of 50,000 yuan.

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You need to pay a deposit when purchasing gold bars. In addition to the sharp fluctuations in the gold price, it is also related to the supply and demand of gold bars. In a store in Shuibei, Shenzhen, which specializes in wholesale investment in gold bars, many gold bars at the counter have been sold out .

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It is understood that this company mainly engages in gold bar wholesale business, and the reporter met many merchants who came to purchase goods on the spot.

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Mr. Zhu, a gold purchaser: There are many people queuing in the exhibition hall now, and I waited for two hours to get this little product .

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Mr. Xiao, a gold purchaser: It’s not easy to grab, we order in advance, and it may not be available . Ordered two days in advance and only got the goods today. Actually, we make jewelry, but now customers may think that gold bars are more valuable, so there are more people who choose gold bars now.

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Industry insiders pointed out that since last year, demand for gold bars has increased significantly. The price of gold has fluctuated sharply recently, and many investors plan to buy at low levels, which further stimulates purchasing demand.

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Song Jiangzhen, senior researcher at Guangdong Southern Gold Market Research Institute: There are still many investors waiting for the opportunity to fall. 830 yuan per gram fell to around 780 yuan. This decline stimulated the demand for ordinary people to buy or grab goods quickly. The usual inventory may not be available. When short-term demand surges, there is a need to order and then delay delivery.

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