Hong Kong, mainland adapt to higher gold prices amid wedding jewellery demand

Since the beginning of the year, Kelvin Siu and his fiancée had waited for gold prices to decline before buying jewellery for their wedding. Last week, they finally pulled the trigger to purchase, as gold prices continued to climb to fresh highs.

“We had no choice but to buy the gold dragon and phoenix bracelets and other jewellery last week because our wedding day is getting close,” said Siu, who has booked his wedding in December.

Gold prices, which have surged more than 48 per cent this year in the global market, reached a record high of US$3,883 per ounce on Wednesday. That came after recording a 26 per cent increase last year – the biggest annual gain in 14 years.

That reflected how the interest rate cut in September, heightened geopolitical tensions and uncertainty over the US dollar’s outlook prompted investors and central banks to rush to buy gold as a safe haven.

Gold prices in Hong Kong have risen in parallel to the international market. It hit HK$35,370 per tael (37.51 grams) on Tuesday, while gold for jewellery rose to HK$42,840 per tael.

Chow Tai Fook Jewellery, a leading retail chain in Hong Kong and mainland China, saw sales rise in spite of record-breaking gold prices.

“Following the surge in international gold prices since March last year, we have observed that consumers have gradually adapted to this new level,” a Chow Tai Fook spokesman said.

South China Morning Post