Major state-owned banks in China have issued alerts regarding heightened risks in the precious metals market. On March 23, Bank of China released a notice emphasizing the need for enhanced risk prevention in precious metals trading.
The notice highlighted that recent increases in global geopolitical tensions, combined with multiple other factors, have led to significant volatility in both domestic and international precious metals prices. To safeguard the interests of clients participating in gold accumulation plans, interest-bearing gold products, and other precious metals-related services, Bank of China urged customers to strengthen their market risk management. The bank advised investors to make rational investment decisions based on their financial situation and risk tolerance, maintain reasonable exposure to precious metals, and consider long-term investment strategies to mitigate the impact of short-term price fluctuations and avoid potential capital losses.
Earlier, on February 12, Bank of China adjusted the purchase conditions for its gold accumulation products. The minimum purchase amount for these products or the establishment of a fixed investment plan was raised from 950 yuan to 1,200 yuan, while the requirement for additional purchases to be in multiples of 200 yuan remained unchanged. Existing fixed investment plans were not affected. For purchases based on weight, the minimum remained at 1 gram, with additional purchases still required to be in multiples of 1 gram.
Gold and silver prices experienced sharp declines. On March 23, international gold prices fell sharply, with spot gold breaking through several key levels and declining by more than 8% intraday. As of the latest update, the price stood at $4,240 per ounce.
COMEX gold futures also dropped by over 10% at one point, currently trading at $4,263.5 per ounce. This week, the international gold market faced intense selling pressure, recording its largest weekly decline in nearly 43 years, dating back to March 1983.
Influenced by the drop in international gold prices, domestic gold prices in China fell below 1,000 yuan per gram. As of the latest update, domestic spot gold was quoted at 923.9 yuan per gram.
Several major domestic jewelry brands adjusted their prices for pure gold jewelry accordingly. Chow Tai Fook's pure gold jewelry price per gram fell to 1,375 yuan, down 4.98% from the previous day. Lao Feng Xiang and Lao Miao both set their pure gold jewelry prices at 1,374 yuan per gram, while Chow Sang Sang's price was 1,367 yuan per gram.