Gold buying activity across China has intensified as record high prices continue to draw both buyers and sellers into the market, reflecting strong confidence that the rally is far from over. Jewellery shops and bullion dealers in major cities have seen a surge in foot traffic as consumers look to secure gold despite rising costs. Market participants say gold is increasingly viewed as a long term store of value rather than a short term trade, particularly amid global economic uncertainty. Many buyers believe the upward trajectory remains intact, supported by structural factors rather than speculative demand alone. The surge follows a sharp rise in global prices over the past year, with gold reaching historic highs and reinforcing its appeal as a safe haven asset. Retail demand has remained resilient even as prices move beyond levels previously considered psychologically difficult for consumers.
The strong performance has been driven by a combination of central bank purchases, currency diversification efforts, and heightened demand for assets perceived as stable during periods of geopolitical and economic volatility. Analysts expect prices to continue rising through the year, citing sustained institutional buying and constrained supply. In mainland China, individual investors and older savers have been particularly active, with many saying they are willing to accept current price levels in anticipation of further gains. At the same time, gold retailers report that investment focused products such as bars and coins are outperforming traditional jewellery items. While higher prices have weighed on wholesale jewellery demand, interest in physical gold as an investment has helped offset the slowdown, keeping overall market activity elevated.
In Hong Kong, gold trading volumes have also surged, with dealers reporting some of their busiest months in years. Strong demand has led to supply bottlenecks, particularly for smaller gold bars, as refineries work to ramp up production. The rally has encouraged some holders to sell inherited or long held jewellery to capitalize on high prices, leading to long queues at trading shops. Industry veterans say the current environment is unlike previous cycles, with uncertainty playing a central role in sustaining demand. Despite concerns about affordability, sentiment remains broadly bullish, with many market participants expecting instability in global markets to continue supporting gold prices in the near to medium term.
