China's Gold Jewelry Prices Surge Past 1,330 Yuan/gram Amid Qixi Festival Promotions

China's gold jewelry prices surged past 1,330 yuan per gram in mid-August, driven by a rebound in international gold prices. According to analysts, the transmission of international gold prices is the primary driver behind this surge.

The Qixi Festival promotions and investor caution have had mixed effects on demand. Some retailers offered discounts as steep as 22% off during the festival, significantly stimulating essential consumption demand. However, high prices have deterred some buyers, with one consumer stating she is waiting for gold jewelry prices to drop below 1,000 yuan per gram.

The investment side has seen a shift toward smaller, staggered purchases, with investors choosing to wait for greater clarity before making decisions. Despite the long-term bullish outlook for gold, market views on its current valuation near $4,300/oz are sharply divided.