Gold Rush Intensifies as Prices Hit New Highs
As gold prices reach unprecedented heights this week, customers have flocked to stores in Shanghai and Hong Kong that offer the precious metal, with some speculating that the price may continue to climb. “There are still quite a lot of people buying it, because gold awareness is a long-term trend and it’s still heading upwards,” gold seller Zhao Jinhao said on Tuesday. It has increased from slightly above 20 yuan in the 1980s to over a thousand yuan today, maintaining a consistent upward trend throughout this period. On Monday, gold prices exceeded $5,100 per ounce following a remarkable 62 percent increase in 2025. The record-breaking run has been driven by central bank purchases aimed at decreasing dependence on the US dollar, alongside robust demand from buyers seeking a safe-haven asset following the tumultuous first year of US President Donald Trump’s second term. Analysts stated on Monday their expectation for gold to reach $6,000/oz by year-end, describing this forecast as conservative, as prices could potentially rise even further.
Sixty-eight-year-old Shanghai resident Wang Qiuqin seemed to concur, stating that the “crazy” rise in prices had motivated her to visit a gold store for a purchase. If this trend continues, gold is expected to rise further. I can still mentally accept the current price level, so I decided to come buy some. In Hong Kong, Simon Littmann, the executive manager of Swiss Investors Corporation Limited, which trades in precious metals such as gold and silver, stated that business in January this year was his best ever in approximately 20 years in the trade. “Last year was probably our second-busiest year, and this year is looking to get very busy, but we have supply problems,” he said. The supply of small gold bars has faced delays attributed to robust demand, as refineries worldwide are working diligently to increase production of these products for the retail sector, he added.
While many others are also not deterred – China’s central bank purchased bullion every month last year – elevated prices continue to impact demand. Last year, wholesale gold demand in China experienced an 11 percent decline, influenced by increased prices and reforms that elevated taxes, which negatively impacted jewelry demand, even as there was heightened interest in investment-style bars and coins. Record prices are prompting others to capitalize. On Tuesday, a significant number of individuals lined up outside the Chong Kee gold shop located in Hong Kong’s central business district, eager for the opportunity to exchange their gold and silver.
Some had to wait hours to enter the premises, where they had trinkets like bracelets, necklaces, small statuettes, and bars placed onto scales to be weighed. It will certainly rise further. “Society is so chaotic and unstable now,” said Cherry Tam. “Given the current state of the economy, I am able to recover some funds to allocate for spending.” Dick Liu, a 79-year-old gold craftsman with over 50 years of experience in the industry, remarked that the uncertain times would persist in driving the boom, a phenomenon he had not witnessed throughout his extensive career. Trump’s current stance suggests that gold will continue to rise. It will not fall.
