Chinese Gold Buying Spree During 9-Day Spring Festival Holiday

Chinese consumers engaged in a notable surge in gold purchases during the recent nine-day Spring Festival holiday, which concluded on Monday. This period is traditionally viewed as a peak season for gold consumption, particularly as demand escalates due to wedding ceremonies, gift-giving practices, and other critical purchases.

The heightened consumer activity corresponded with global spot gold prices reaching impressive highs, exceeding $5,100 per ounce throughout the holiday. Such price dynamics further fueled the fascination with gold as an investment and cultural asset.

In response to increasing consumer interest, numerous Chinese jewelry retailers launched robust marketing initiatives aimed at driving sales during the holiday season. Well-known brands like Laopu Gold and Chow Tai Fook featured enticing promotional strategies, including discounts such as "spend 1,000 yuan and receive a deduction of 100 yuan," gram-based discounts, and reductions in craftsmanship fees.

Laopu Gold also revealed plans for a broad price adjustment across its entire product range beginning February 28. This adjustment indicates the brand's confidence in the sustained demand for gold products amid growing prices.

Several Zhou Liu Fu outlets instituted promotions that offered substantial discounts of 150 yuan per gram on their gold items, while CHJ Jewelry stores implemented an even greater reduction of 247 yuan per gram. These strategic pricing moves are reflective of a competitive market seeking to capitalize on consumer enthusiasm.

According to a salesperson at a Chow Tai Fook location in Beijing's Chaoyang district, customer turnout and purchase frequency noticeably increased this holiday compared to previous years. Key observations pointed to the wedding market as a primary catalyst for this gold consumption spike, with complete sets of gold jewelry typically averaging over 100,000 yuan in transaction value.

Domestically, gold prices hovered around 1,500 yuan per gram, nearly double the levels observed during the last Spring Festival. Analysts note that the ongoing "gold rush" signifies a strong recognition among Chinese consumers of gold as both a hedge and a preservation of value.

China's gold prices have mirrored international market trends, with spot gold trading between $4,800 to $5,200 per ounce during the festival. As of Monday at 5 PM Beijing time, the rate reached $5,140 per ounce.

Industry experts, including analyst Zhou Yinghao, highlighted the continued strength of gold demand as the US dollar faces credibility challenges. Global tensions, particularly geopolitical conflicts, bolster gold's appeal as a safe-haven asset whenever risk events manifest.

Looking ahead, Zhou predicts that with global strife persisting, substantial declines in gold prices are unlikely. However, he cautions investors about potential volatility, given the significant gains observed in recent times.

The World Gold Council has reported a record demand for total gold, surpassing the 5,000-ton threshold for the first time in 2025. Global gold exchange-traded fund (ETF) holdings also increased significantly by 801 tons, marking a robust year in the gold market.

Furthermore, in recent months, multiple central banks around the world have augmented their gold reserves. China's gold holdings reached 74.19 million ounces by the end of January, reflecting an increase of 40,000 ounces from the previous month, thus continuing a buying streak that has now extended for 15 consecutive months.