LINE

Text:AAAPrint
Economy

Beijing stores cut gold prices on slump

1
2016-10-11 08:43China Daily Editor: Xu Shanshan ECNS App Download
Customers look at jewelry at a gold store in Beijing. (Photo by Cao Boyuan/For China Daily)

Customers look at jewelry at a gold store in Beijing. (Photo by Cao Boyuan/For China Daily)

The biggest weekly slump in the global gold price led Beijing's gold stores to cut their prices for the first time this year. The price in Beijing declined by 10 yuan ($1.5) per gram on Sunday. This was the first cut, following six earlier price increases this year.

Gold had the biggest weekly loss in more than three years as investors debated prospects for higher U.S. rates.

In China, prices declined as trading restarted after a week's holiday. Bullion of 99.99 percent purity slumped 4 percent to 273.6 yuan per gram on the Shanghai Gold Exchange at 15:30 on Monday.

Huang Liang, a gold analyst at Guohua Jewelry, said the price cuts by Beijing's gold stores were within expectations.

"There's a stronger expectation that the U.S. Federal Reserve will raise rates in December, so the dollar is rising and gold price is decreasing," said Huang.

Yu Guiying at Beijing-based All Love All Life Gold Store said their jewelry business was not influenced by the global price slump, and the price reductions at Beijing's gold stores from Sunday would further promote their sales.

"But it is true that people are less interested in purchasing gold bullion as an investment product," said Yu.

Goldman Sachs Group Inc said on Thursday that a drop in gold prices significantly below $1,250 per ounce would present investors with a strategic buying opportunity, with the metal offering protection against risks to global growth and the limited effectiveness of central banks.

China's official gold reserves stood at 18.4 million metric tons in September this year, up 74 percent from that in June 2014, according to data of the People's Bank of China.

  

Related news

MorePhoto

Most popular in 24h

MoreTop news

MoreVideo

News
Politics
Business
Society
Culture
Military
Sci-tech
Entertainment
Sports
Odd
Features
Biz
Economy
Travel
Travel News
Travel Types
Events
Food
Hotel
Bar & Club
Architecture
Gallery
Photo
CNS Photo
Video
Video
Learning Chinese
Learn About China
Social Chinese
Business Chinese
Buzz Words
Bilingual
Resources
ECNS Wire
Special Coverage
Infographics
Voices
LINE
Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
Copyright ©1999-2018 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.