Gold prices surge, the Spring Festival gold consumption market remains hot

After the correction during the recovery phase, since the eve of the Chinese New Year in the Year of the Horse 2026, international gold prices have stabilized at a high of $5,000 per ounce. On the afternoon of February 20, spot gold prices surged intraday, closing up 2.2% for the day at $5,110 per ounce.

Domestic gold jewelry prices have surged past 1,500 yuan per gram, with some high-end brands offering fixed prices that can exceed 2,000 yuan per gram. Even at these historically high prices, the gold consumption market during the Year of the Horse 2026 Lunar New Year remains vibrant.

Reporters visiting multiple gold shops and bank branches over recent days found that wedding needs, zodiac gift-giving, and hedging anxieties are intertwined, prompting consumers to calculate per-gram prices and discounts before decisively making purchases. Small-weight jewelry, Year of the Horse zodiac gold, and bank investment gold bars have become popular choices. Merchants are offsetting high prices with “per-gram discounts plus special services,” creating a lively scene of “steady demand despite high prices and rational investment behavior.”

Popular Items Sold Out Before the Festival: “Zodiac Styles” and “Small-Weight” Gold

“Today is our last day of operation; many styles are out of stock. It’s best to place orders after the New Year,” a staff member at a well-known handmade gold brand store in Shenzhen’s Shuibei market told reporters. With about a week remaining before the Lunar New Year, the store has begun clearing inventory and has repeatedly declined retail customers seeking to purchase. The staff member explained that the store received many wholesale orders before the festival, and popular styles are currently out of stock.

Since 2026, international precious metal prices have risen sharply, approaching the historic high of $5,600 per ounce at one point. After a significant correction, gold prices in New York have stabilized above $5,000 per ounce just before the Lunar New Year, giving many gold buyers a buying opportunity.

“It’s my zodiac year, I need to get some gold jewelry to turn my luck around. Gold prices have pulled back these days, so buying now is like earning a profit passively,” said Ms. Li, who was browsing the gold jewelry markets in Shuibei. She explained that saving gold before the New Year has been her long-standing habit. Although gold prices rose about 400 yuan per gram last year, she remains bullish on gold and plans to continue buying.

Eventually, Ms. Li selected a finely crafted lucky bead with small red agate accents. Her two-gram gold piece cost around 3,000 yuan. “Choosing small-weight pieces keeps the total cost reasonable, they look good and carry good meanings. Gold can retain value over time, so it’s a win-win,” she said with a smile.

Many other consumers share Ms. Li’s intention to buy gold before the festival.

In Zhengzhou, Henan, known as the “Little Shuibei,” the gold and silver shopping district gathered a large number of customers from surrounding cities and provinces before the Lunar New Year.

Sales staff at counters reported that since February, sales of small-weight gold jewelry and zodiac-themed products have increased by 40% year-on-year. Some popular items are already out of stock.

“Many families buy for symbolic reasons. Essential purchases are hardly affected by high prices; instead, they worry prices will rise further,” a staff member at Jin Duo Yin Duo Jewelry Plaza told reporters. The rising gold prices have indeed increased the threshold for buying gold, so the store has focused on offering various small, 3D-engraved products to meet market demand.

Reporters also saw many gold shops with shelves of 1-gram gold beans and mini lucky beads, attracting crowds. These lightweight products are low-priced, easy to match, and favored as entry-level gold purchases for young consumers.

Merchants Use Creative Promotions to Attract Customers and Encourage Careful Spending

Despite the market’s heat, reporters sensed that high gold prices are making consumers more cautious.

In the face of high prices and strong demand, major gold brands are deploying various strategies to counteract consumption suppression. During visits, it was observed that promotional activities range from per-gram discounts to service upgrades, with layered discounts being key to attracting customers.

“Spend 1,000 yuan and get 50 yuan off; spend 10,000 yuan and get an additional 5% discount—today is the last day of the promotion,” a sales associate at an old Zhengzhou gold shop told customers about Valentine’s Day promotions a week before the Lunar New Year. Despite it being a weekday, the store still had customers waiting in line and a crowd browsing at the counters.

Ms. Wang, who was consulting about a necklace priced over 50,000 yuan, said she could save more than 2,500 yuan under the current promotion, so she came specifically before it ended.

Across from Jin Duo Yin Duo Jewelry Plaza, at Zhongyuan Jewelry City, Ms. Wang compared prices from three brands but didn’t buy yet: “They all have discounts, but after calculations, it’s still over 1,200 yuan per gram. I’ll wait and see if prices drop after the festival.” She held a sheet with prices, listing base gold prices, craftsmanship discounts, and promotions—highlighting the importance of careful calculation.

“Now, customers’ first question is the gold price, and the second is about discounts. Relying solely on brand reputation is no longer enough,” a staff member at a branded gold shop told reporters. She explained that sales during the Spring Festival usually account for over 50% of quarterly sales, so merchants are going all out. Besides price discounts, unique services have become new competitive points. Her brand offers “lifetime free stringing and cleaning,” which has attracted many young customers. “Many young people worry about styles becoming outdated, and this service makes buying jewelry more flexible,” she added.

Recycling and Exchange Markets Booming; Beware of Blind Investment During High Gold Prices

With gold prices remaining high, not only is the sales market active, but the recycling market is also quietly growing.

During visits, reporters observed that in Zhengzhou’s busy commercial districts, several new gold recycling stores have opened recently. Some shops that previously focused on trading branded cigarettes and liquor now also accept gold.

“Consumers’ views on gold price trends vary. Those optimistic continue to buy, while those who think prices have peaked are eager to cash out now,” said Ms. Hu, who closely follows the gold market. She admits she remains bullish long-term but is cautious about buying new gold at current high prices. She prefers to exchange old gold for new pieces.

Many branded jewelry stores also support “one gram for one gram” exchanges, where consumers only pay the craftsmanship fee to get new gold jewelry, avoiding risks from price fluctuations.

“With rising gold prices, various investment and consumption channels related to gold are heating up. However, as global ‘de-dollarization,’ geopolitical risks, and central bank gold purchases continue to unfold, increased volatility will become the new normal. Consumers should be alert to the ‘rollercoaster’ investment risks,” said Cheng Xiaoyong, Assistant General Manager of Huawen Futures Co., Ltd. According to institutional forecasts, international gold prices could reach $6,300 per ounce by the end of 2026. The long-term bullish outlook remains, but short-term volatility risks should not be ignored. For essential purchases like weddings, gifts, and zodiac years, it’s recommended to de-emphasize short-term investment attributes, focusing instead on craftsmanship, brand, and wearability. Consumers with urgent needs should take advantage of merchant promotions, choosing products with moderate weight and mature craftsmanship, avoiding blindly pursuing large weight or high-premium limited editions. For investment purposes, it’s advised to prioritize bank investment gold bars, gold ETFs, and other low-premium products, adopting a “dollar-cost averaging” approach to avoid lump-sum purchases at high prices.

It’s also important to remind consumers to choose正规渠道 for gold recycling transactions, pay attention to pure gold purity, and avoid losses from “short weight” or hidden fees.

Source: eCompany

(From: Securities Times)