bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

authorLocations

authors

paywallTypes

corrections

sponsorType

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Enoch Yiu

Gold jewellery sales are expected to continue to decline in the Year of the Snake, as record-high prices of the precious metal have weakened consumer appetite, according to industry players.
Bullion prices in the Year of the Dragon, which ended on Tuesday, jumped 35 per cent to HK$25,6o0 per tael (US$3,282 for 37.9 grams) on last trading day on Monday.
International gold prices have been on a tear since last year. Spot gold traded at US$2,772 per ounce on Monday, just shy of an all-time high of US$2,790.07 in October.
“In the Year of the Dragon, gold kept breaking record highs due to geopolitical tensions and interest rate cuts that began in September,” said Robert Lee Wai-wang, a lawmaker and chairman of Hong Kong financial firm Grand Finance Group.

The Year of the Dragon recorded one of the biggest increases in the price of gold in recent years, after a 6 per cent rise in the preceding Year of the Rabbit and 7 per cent in the Year of the Tiger before that, according to data from Hong Kong Gold Exchange (HKGX).
Looking back further, prices fell 1 per cent in the Year of the Ox, but surged 20 per cent in the Year of the Rat and 18 per cent in the Year of the Pig.
The snake is sixth in the 12-animal Chinese zodiac, which follows in the order of rat, ox, tiger, rabbit, dragon, snake, horse, goat, monkey, rooster, dog and pig, representing a cycle of 12 years according to the Chinese lunar calendar.
“As we enter the Year of the Snake, gold is set to go up further as more interest-rate cuts are expected this year, which will attract investors to shift their money from bank deposits to gold,” said Lee, who is also the vice-president of HKGX, which was rebranded from Chinese and Silver Exchange Society this month.
Central banks would also continue to buy gold to boost their reserves, he added.
While gold continues to be investors’ darling, Lee said high prices would continue to deter consumers and weaken sales of jewellery.
The increase in jewellery sales forecast by industry players in the Year of the Dragon did not materialise because of the high prices.
“Consumption of gold jewellery in China declined almost 19 per cent in 2024, but this year we expect demand to remain at the same level,” said Joshua Rotbart, managing partner of Hong Kong gold trading firm J. Rotbart & Co.
“This, of course, depends on [US President Donald] Trump’s trade policies towards China,” he said. “Further escalation and imposition of tariffs may hurt China’s economy, which will result in a further decline in jewellery consumption.”
However, investment demand was expected to remain robust because of bullion’s haven status amid geopolitical concerns and a weaker yuan, he said.
Some industry players expect gold to hit new highs this year as investors bet on the resilience of the yellow metal.
“The price may test the US$3,000 level” but not before correcting in the first half of 2025 to a level between US$2,400 and US$2,800, said Anderson Cheung, head of global commodities at Best Profit Capital. The Hong Kong-based financial firm is part of Guangzhou-based conglomerate Kingold Financial Services.
With gold continuing to rise to higher levels, consumers may opt for smaller jewellery pieces or even borrow jewellery for their wedding instead of buying, Cheung said.
“Gold jewellery sales will be affected by the high prices,” he said. “We will have to wait for the economy to recover before jewellery sales pick up again.”


Year of the Snake: gold’s ascent to record highs to dampen jewellery sales

Hong Kong to join LME warehouse network to serve China’s appetite for metals

Family offices to favour Taiwan, India and US in 2025; may increase China exposure

Gold could hit US$3,000 in 2025 amid continuing bull run

Gold in Hong Kong

A customer checks out gold jewellery in Hong Kong. Photo: Nora Tam

Tourists shop for in Hong Kong. Photo: Jelly Tse

Year of the Snake: Hongkongers’ MPF investments to face volatility, analysts say

A floral arrangement heralds the Year of the Snake at Mong Kok Flower Market on January 20, 2025. Photo: Dickson Lee

People examine items at the Lunar New Year fair at Victoria Park in Causeway Bay on January 23, 2025. Photo: Sam Tsang

Gold has had a stellar year. Photo: Shutterstock

City’s 114-year-old bullion bourse restructures to become Hong Kong Gold Exchange

Members of the Chinese Gold & Silver Exchange Society voted to turn the city’s 114-year-old gold bourse into a corporation. Photo: Shutterstock 

Business

Money

News

Hong Kong

Hong Kong economy

The price of the precious metal, which jumped 35 per cent in the Year of the Dragon, is expected to maintain its elevated trajectory


The price of the precious metal, which jumped 35 per cent in the Year of the Dragon, is expected to maintain its elevated trajectory.
