Following a period of adjustment, international gold prices have stabilized above $5,000 per ounce since the approach of the 2026 Year of the Horse Spring Festival holiday. On the afternoon of February 20, spot gold experienced a significant intraday rally, closing up 2.2% for the day and surpassing $5,110 per ounce.
Domestic gold jewelry prices subsequently broke through the 1,500 yuan per gram mark, with some premium fixed-price items from high-end brands effectively reaching over 2,000 yuan per gram. Despite these historically high price levels, consumer activity in the gold market during the 2026 Spring Festival period remains vigorous.
Visits to numerous gold retailers and bank branches revealed a market driven by a mix of essential wedding purchases, zodiac-themed gifting, and保值 anxieties. Consumers are carefully calculating per-gram costs and discounts while proceeding decisively with their purchases. Popular choices include lightweight jewelry, Year of the Horse-themed gold items, and investment bars from banks. Retailers are countering high price pressures with strategies like "per-gram discounts plus specialized services," painting a picture of "steady essential demand alongside more rational investment behavior."
Best-selling items were out of stock before the holiday, with "zodiac-themed" and "lightweight" products being particularly sought after. A week before the Lunar New Year, staff at a well-known handmade gold brand store in Shenzhen's Shuibei market were already clearing inventory and turning away retail customers, citing high volumes of pre-holiday wholesale orders that left popular styles unavailable.
After a significant rally earlier in 2026 that brought international precious metal prices close to the $5,600 per ounce historic high, a subsequent notable correction saw New York spot gold prices stabilize again above $5,000 per ounce just before the festival. This price movement presented a buying opportunity for some consumers. One shopper in Shuibei mentioned making a traditional New Year gold purchase despite prices rising approximately 400 yuan per gram over the past year, expressing continued optimism about gold's value.
Lightweight gold jewelry and zodiac-themed products saw a 40% year-on-year sales increase in February at a major jewelry market in Zhengzhou, Henan province, with some popular items completely sold out. Sales staff noted that demand driven by symbolic meaning and essential gifting was largely unaffected by high prices, with some consumers concerned about further increases. In response, stores prominently featured smaller, lightweight items crafted with 3D-hard gold technology to meet market demand. Display areas for 1-gram gold beans and mini lucky beads were crowded, as these affordable, versatile items appeal particularly to younger, first-time gold buyers.
Despite strong market interest, the high price of gold has made consumers more cautious. Gold brands have deployed various promotional strategies to mitigate potential consumer hesitation. Discounts were layered, ranging from per-gram price reductions to service upgrades, becoming key to attracting customers. In Zhengzhou, a store salesperson promoted a Valentine's Day event offering discounts for spending thresholds, which attracted customers even on a weekday. One prospective buyer calculated significant savings on a desired necklace due to the promotions.
Shoppers are comparing prices and discounts meticulously. One customer, after visiting three different brands, decided to postpone her purchase, hoping for a post-holiday price dip. She noted that despite various promotions, the effective price per gram remained high, necessitating careful calculation. A salesperson acknowledged that customers now prioritize asking about both the current gold price and available discounts, indicating that brand appeal alone is insufficient. To compete, some brands introduced value-added services, such as free lifetime bracelet threading and cleaning, to attract style-conscious younger customers who value flexibility.
The high gold price environment has also stimulated activity in the gold recycling and exchange market. Recently, several gold buy-back stores have opened in busy commercial areas of Zhengzhou, and some businesses previously focused on recycling luxury items like cigarettes and alcohol have added gold trading services.
Opinions on future gold price movements are divided among consumers. Those bullish on gold continue buying, while others believing prices have peaked are looking to cash out. Some consumers prefer exchanging old gold jewelry for new items to avoid direct exposure to current high prices, paying only the crafting fee for new pieces. Staff at brand stores confirmed that such one-to-one exchange programs are available.
An expert from Huawen Futures noted that while factors like global de-dollarization, geopolitical risks, and central bank gold purchases support a long-term bullish outlook—with some institutional forecasts pointing to $6,300 per ounce by the end of 2026—increased volatility is becoming the new norm. He advised consumers to be wary of potential "roller-coaster" price swings. For essential purchases like wedding jewelry or zodiac gifts, he recommended focusing on craftsmanship, brand, and aesthetic appeal rather than short-term investment potential. Buying during promotional periods and choosing items with moderate weight and mature craftsmanship is suggested. For investment purposes, products with lower premiums like bank gold bars or gold ETFs are preferable, using a "dollar-cost averaging" strategy rather than making lump-sum investments at peaks. Consumers are also reminded to use正规 channels for gold recycling transactions, verify purity, and be cautious of hidden fees or weight discrepancies to avoid losses.