China Gold Price Drops, But Savings Vary Widely
The gold price has dropped significantly in China, with some brands cutting their listed prices by as much as 106 yuan per gram. On September 2, Chow Tai Fook, Laomiao Gold, and other leading gold stores reduced their prices by 35-37 yuan per gram in a single day.
This drop in price is attributed to the simultaneous pullback of the international and domestic gold markets. The Au99.99 contract on the Shanghai Gold Exchange closed at 937.50 yuan per gram, down 20.42 yuan from the previous trading day.
However, it's essential to note that the listed price in gold stores is not directly related to the exchange price. Brands add various costs such as processing fees, brand premiums, and design expenses, which can make the final price of gold jewelry significantly higher than the raw material cost.