As the Lunar New Year approaches, the newly opened jewelry-grade gold brand Junpei in Beijing's Guomao shopping mall is witnessing robust purchasing activity. Even on weekday afternoons, strong consumer interest and queues lasting several hours indicate that during this traditional peak gold consumption season, the pursuit of personal indulgence has surpassed short-term price fluctuations as the primary market driver.
The enthusiasm at Junpei is not an isolated case. Market visits reveal that lightweight gold jewelry, which combines auspicious symbolism with modern aesthetics, continues to sell well during the Spring Festival period. This consumption surge occurs against the backdrop of volatile international gold prices: from a high of $5,594.77 per ounce for London spot gold on January 29 to a low of $4,393.49 on February 2, representing a maximum fluctuation exceeding 20% within just three trading days. As of February 12, London spot gold was trading at $5,073.6 per ounce, having oscillated between $5,000 and $5,100 for four consecutive sessions.
The sharp international price movements since late January have quickly impacted domestic markets. After briefly touching 1,700 yuan per gram in late January, jewelry gold prices from major Chinese brands have retreated to between 1,550 and 1,562 yuan per gram as of February 12.
While the price correction has ignited purchasing enthusiasm among essential consumers, some participants in the recycling market are choosing to cash out, utilizing the recovery channel to exit at relatively high levels.
In response to recent significant price fluctuations, several gold jewelry brands have adjusted their buyback policies. For instance, Beijing Caishikou Department Store announced on February 2 that starting February 6, 2026, it would suspend precious metals repurchase services during weekends and public holidays when the Shanghai Gold Exchange is closed. Similarly, China National Gold Group Gold Jewelry Company stated on February 6 that from February 7, 2026, it would halt precious metals repurchase business during non-trading days. Both companies will implement quota management and appointment systems for repurchase transactions during business hours.
Zhang Chen, a precious metals analyst at Yide Futures, noted that with significantly increased price volatility and rising uncertainty, domestic gold jewelry brands can utilize derivative instruments like futures for risk management alongside normal repurchase activities during trading days. This approach helps match risk exposure and maintain stable operations.
Despite short-term international gold price volatility, Wen Bin, chief economist at China Minsheng Bank, believes longer-term price support remains due to central bank purchasing, sustained high levels of gold investment, and ongoing geopolitical and trade friction risks.
Notably, some physical gold consumers have incorporated gold ETF systematic investment plans into their asset allocations to navigate market turbulence. "Current jewelry gold prices seem too high, and I worry about buying at the peak," explained Ms. Deng. "Since physical gold liquidation is cumbersome and involves discounting during recycling, I've started daily 200-yuan gold ETF investments with friends. This allows participation in gold's long-term value without bearing the risk of lump-sum purchases."
Market analysts anticipate gold prices will likely continue range-bound fluctuations leading up to the Spring Festival holiday.