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Gold prices have hit new highs! What are the reasons for the current rising gold prices?
2025-04-30 source:CCTV.com

CCTV News: Since the beginning of this year, gold prices have continued to show an upward trend. In recent days, international gold prices have hit new highs, and the prices of gold jewelry have also risen. How is the overall situation of the gold market now? The reporter immediately visited the gold market.

In Shenzhen Shuibei, the largest gold trading market in the country, although the Spring Festival holiday has just passed, most gold shops have opened to welcome customers. A salesperson of a gold shop told reporters that on average, 5-10 batches of customers come to buy gold jewelry every day in the past two days.

Shenzhen Shuibei Gold Merchant Jiang Zhenghui: What customers are paying attention to now is whether the goods look good, how well they are made, and how good they are.

In Caibai, Beijing, the gold jewelry counter is crowded with consumers who try on and buy, and there are also many consumers asking for prices before investing in the gold bar counter.

Consumer Yue Shuxin: Buy a gold bracelet for my mother, it feels OK. I just asked, if it is expensive, I will buy a smaller gram weight.

Consumer Li Yaci: I just want to stock up a little at home, and I like it more. Buy a few grams within ten grams per year, just save a little.

Since this year, the price of gold has continued to show an upward trend.

Purple Gold Tianfeng Futures Precious Metals Researcher Liu Shiyao: The price broke through US$2,700 per ounce on January 16, and rebounded continuously in recent trading days, rising to more than US$2,880 per ounce, which is about 42% higher than the same period last year. As of February 5, there have been five consecutive weeks of gains in that week.

As the international gold price has been rising, since the beginning of the year, the retail price of brand gold jewelry has been rising from 779 yuan per gram, and it has exceeded 830 yuan per gram on February 6, and some brand gold jewelry has even exceeded 860 yuan per gram.

Industry insiders said that after the rise in gold prices, many consumers still have the need to wear and give gifts to elders or younger generations. In addition, some consumers have the habit of buying gold for many years. Therefore, the gold consumption market is not cold, but these consumers will consider the weight when buying gold, and the small weight accounts for the majority.

Experts analyzed: What are the reasons for the current continuous rise in gold prices?

What is the main reason for this wave of rise in gold prices? Let’s listen to the experts’ analysis.

The latest gold demand trend report released by the World Gold Council recently showed that global gold demand hit a new record high in 2024, reaching 4,974 tons, an increase of 1.5% over 2023. Experts say demand growth is related to factors such as geopolitical conflict and economic uncertainty. In addition, global central banks' increase in gold reserves and global central banks' monetary policies also have a certain impact on gold prices. Data shows that in 2024, the total purchase volume of central banks around the world has exceeded 1,000 tons for the third consecutive year.

Di Tian Lihui, Dean of the Institute of Financial Development, Nankai University: In terms of demand, the global central banks, various types of investors and consumers continue to purchase gold, and in terms of supply, the cost of gold mining has increased, environmental protection requirements have increased, and the output growth rate is limited. Buy more but have limited supply, and supply and demand issues have driven gold prices higher. Moreover, central banks around the world have stimulated the economy and adopted loose monetary policies, which has also pushed up gold prices to a certain extent.

Experts said that in 2025, the risks of many assets, including the US stock market, are increasing. It is expected that this trend will continue for a period of time, which also makes more funds choose gold as a safe-haven investment product.

Gu Fengda, chief analyst of Guosen Futures: A large number of institutional investors have re-entered the credit decline of the US dollar, high premiums for US stocks, and instability, due to the demand for diversified allocation, funds have re-entered gold assets.

Experts: There are many ways to invest in gold, and we need to consider it comprehensively

The prices of gold jewelry are now higher. If consumers want to buy gold to invest, are there any other ways? In various ways, what should you pay attention to when investing?

Experts said that in addition to buying gold jewelry and investing in gold, there are also different ways such as funds, physical gold bars, gold mine stocks, etc. Each method has its own advantages and disadvantages, and should be considered comprehensively based on your own situation.

Di Tian Lihui, Director of the Institute of Financial Development, Nankai University: Buying funds that mainly track gold prices is low. This method has a low investment threshold, and it is easier to monetize. When purchasing physical gold bars, the additional cost is relatively small, but you should pay attention to the cost of storage and the possible discount problem when selling. Investors can also choose stocks of gold listed companies, but they should note that the prices of such stocks are not only affected by the gold price, but also related to the operating conditions of listed companies and the market environment.

Of course, when investing, you should pay special attention to prices. Experts remind that if you want to buy and are worried that the price will be at a high point, you can consider investing regularly and batchwise to diversify risks.

Caibai Co., Ltd. Senior Gold Investment Analyst Li Yang: For ordinary investors, it is never possible to buy the lowest and optimal points. By configuring in batches, relatively speaking, the entire price can be relatively averaged through the cycle of time.

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