Gold Prices Continue to Fall as Jewelry Sales Surge While Investment Gold Loses Appeal

MaticHoleFiller · 2026-03-23T08:23:33+00:00

This Friday, spot gold dropped below $4,500, declining for eight consecutive days, which led to an increase in customer traffic at Shanghai gold stores. Consumers are more inclined to buy jewelry, with fewer inquiries about investment gold bars, and gold recycling has also decreased. Analysts indicate that this sharp decline in gold prices is caused by multiple factors, including the failure of safe-haven logic and a market liquidity crisis.

MaticHoleFiller

2026-03-23 08:23:33

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Source: CCTV Finance

This Friday, spot gold prices fell below $4,500 per ounce during trading for the eighth consecutive day, causing domestic gold prices to decline steadily. Many consumers saw this as an opportunity to buy. On the 21st, reporters visited and found that many gold stores in Shanghai experienced peak customer traffic.

At 3 p.m. on the 21st, at a gold sales store in Huangpu District, Shanghai, the reporter noticed that within just ten minutes, six or seven customers came to inquire about gold prices. The store’s gold price that day was 1,058 yuan per gram, down more than 10% from last week.

Visit to multiple gold stores revealed that craft jewelry such as traditional gold and 3D hard gold are highly decorative and more popular among consumers during the decline in gold prices. Meanwhile, investment gold bars are relatively quiet, with fewer customers seeking information. A store manager said that recently, the volume of gold buyback transactions has also decreased.

Huang Rongzhen, manager of a gold store in Huangpu District, Shanghai: “People tend to come more on weekends, about 40 to 50 people each day. Jewelry sales are still okay, but buyback activity has decreased recently because gold prices have fallen, and people don’t want to sell.”

It is understood that, affected by the decline in international gold prices, the main Shanghai gold futures contract also fell for five consecutive trading days last week. As of the close on Friday night, the main Shanghai gold futures contract closed at 1,016.12 yuan per gram, a weekly decline of over 8%.

Gu Fengda, Chief Analyst at Guoxin Futures: “The domestic market followed the international gold price, experiencing the largest single-week decline in 40 years. It repeatedly broke through key technical levels at 1,050 yuan and 1,030 yuan, showing a downward trend. The recent sharp drop in gold prices is due to multiple factors coinciding in the short term: first, the short-term failure of safe-haven logic; second, a liquidity crisis in global markets; third, a shift in global monetary policy expectations.”

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Editor: Zhao Siyuan

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