Gold prices hit a new high again. After two consecutive days of "violent" gains over the weekend, the retail prices of gold jewelry at brand chain stores such as Chow Tai Fook, Chow Sang Sang, and Lao Miao have surpassed the threshold of yuan per gram.

However, the rise in gold prices did not lead consumers to chase the price increase. Journalists did not observe bustling scenes in some gold shops in Shanghai over the weekend. Some consumers told reporters that they had considered purchasing earlier when the price was still in the hundreds, but began to hesitate when the price surged to over a thousand yuan per gram. Now, with prices reaching several thousand yuan, they are even more hesitant and dare not buy due to the "fear of high prices."

This year during the "National Day" holiday, a reporter conversed with a shop assistant in some gold stores, who complained that business in the second half of the year was not as good as in previous years, mainly due to the persistently high gold prices. Some shop assistants told the reporter that gold bars were selling better than jewelry this year, with the former having a much smaller premium compared to gold jewelry.

The sustained surge in gold prices continues to suppress the sales performance of gold jewelry brands. The Luk Fook Group in Hong Kong recently released data showing that for the second fiscal quarter (i.e., the third quarter of the year), operating data for the three months ending on a specific date, the group's overall retail revenue decreased by % year-on-year, and same-store sales decreased by % year-on-year. Specifically, same-store sales of gold products at Luk Fook Jewelry fell by %, and same-store sales of gold products sold by weight plummeted by %.

Due to the high proportion of revenue from gold and platinum products in LUK FOOK Group, the sharp decline in gold product sales has a significant impact on its overall performance. The surge in gold prices has kept the price of gold high, but it has not stimulated consumer demand. Market analysts point out that the high base effect and the rapid rise in gold prices have increased market观望情绪, significantly weakening consumers' willingness to purchase gold jewelry.

Luk Fook Group also mentioned in its financial report that gold prices hit new highs during the quarter, affecting sales. In contrast to the surging gold prices, major gold brands showed a "decline" in their performance in the first half of this year. In June, Chow Tai Fook released its annual results announcement for the year ended March 31, showing a 29.4% year-on-year decrease in overall retail value.

Chow Sang Sang's half-year report shows that the company's revenue for the first half of the year decreased by .% to . billion Hong Kong dollars, and net profit dropped significantly by .% to . billion Hong Kong dollars. Chow Sang Sang mentioned at the previous shareholders' meeting that the continuous rise in gold prices has curbed the consumer desire for gold jewelry.

The World Gold Council's report shows that China's gold jewelry demand in the second quarter of the year hit a new low for the same period since 2018, at only 101.7 tons, while China's gold jewelry consumption in the first half of the year decreased by 17% year-on-year to 321.1 tons. The association stated that looking ahead, under the dual influence of seasonal factors and high gold prices, gold jewelry consumption may continue to be weak.

Luk Fook Holdings stated, "Although the sharp rise in short-term gold prices may impact sales, the improvement in gross margin will help mitigate the impact of declining sales. Once consumers adapt to the high gold prices, gold sales are expected to return to normal. Additionally, demand for diamond products remains weak, and the Group will continue to actively promote priced jewelry products outside of the diamond category."