Gold prices have been volatile in 2025, driven by geopolitical tensions and trade shifts. After hitting a record above US$3,500 per ounce in April, prices have since retreated, dipping below key psychological levels in China’s retail market.
In Shanghai’s Yuyuan Garden bazaar, gold jewelry prices dropped to as low as 880 yuan per gram, prompting bargain hunting. However, some sellers report increased gold recycling as investors lock in profits amid fading market fears.
Despite the price pullback, China’s appetite for gold remains strong but is shifting in form. To address rising costs, the Chinese government recently introduced a national standard for “hard pure gold” jewelry—99.9% pure gold that is hardened through new techniques. This innovation allows lighter, hollow designs that maintain size and style but reduce weight and cost by up to one-third.
Industry leaders say this redesign responds to consumer demand for affordable, wearable, and stylish gold pieces, especially among younger buyers. Brands like Chow Tai Fook and Chow Sang Sang are embracing hard gold and hollow techniques to offer modern, lighter jewelry without sacrificing appearance or quality.
The new hard gold standard aims to support quality control domestically and help Chinese jewelers compete internationally, particularly in Southeast Asia and the Middle East. While regulatory challenges remain, online commerce may accelerate expansion.
Ultimately, this product innovation prepares the Chinese gold market for future cycles when prices stabilize and design differentiation becomes key to maintaining demand.
