PRECIOUS METALS | Volatile Gold Prices Impact Shenzhen Market

Recent developments in the Middle East have led to significant fluctuations in international precious metal prices. According to Jin10, the Shenzhen Shuibei market has experienced a rapid shift in sentiment from 'chasing gains' to 'cautious observation' within a few days. The sharp volatility in gold and silver prices has not only affected the retail sector but has also impacted the wholesale market, with retailers across various regions slowing down their purchasing pace. This has resulted in a significant decline in gold and silver wholesale volumes in Shenzhen Shuibei. During a market visit, it was observed that due to the recent severe price fluctuations, many consumers have opted to adopt a wait-and-see approach, leading to a noticeable drop in actual transaction volumes in the gold recycling business. A gold recycling merchant noted, 'The recent price volatility has been significant, and most people are still in a wait-and-see mode, uncertain about future gold price trends. Business volume has decreased by about 50% compared to before the New Year.'