Domestic gold price falls below 1000 yuan! Shanghai Gold Exchange releases latest notice

What is the impact of inflation concerns behind the sharp decline in gold prices on monetary policy?

On the morning of March 23, domestic gold prices quickly fell below 1,000 yuan. As of press time, it was at 982.78 yuan/gram, down more than 4% intraday.

By 9:45 AM, Huaxia Gold ETF (518850) dropped 4.53%, Gold Stock ETF (159562) fell 4.36%, and Non-Ferrous Metals ETF (516650) declined 2.46%.

This morning, multiple brands adjusted their pure gold jewelry prices. Lao Miao Gold’s pure gold jewelry was priced at 1,363 yuan/gram, down 50 yuan from the previous day’s 1,413 yuan/gram. Chow Tai Fook, Luk Fook Jewelry, and Chao Hong Ji Gold prices all fell below 1,400 yuan/gram.

In the past week, international gold prices experienced a dramatic plunge. As of 3:00 PM Beijing time on March 21, London spot gold prices broke below the key level of $4,500 per ounce, with a weekly decline of 10.49%, marking the largest weekly drop since March 1983.

Analysts point out that the main reason is that market trading has shifted from “geopolitical safe-haven” to “inflation expectations and monetary policy battles.” The recent conflict in the Middle East ignited the oil market, quickly triggering strong concerns about a resurgence of global inflation.

Faced with the potential risk of “stagflation,” central banks in major economies may need to reassess their monetary policy paths. Currently, the CME FedWatch Tool shows that the market expects less than a 10% chance of the Federal Reserve cutting interest rates this year, and even the possibility of rate hikes. This increases the attractiveness of interest-bearing assets like bonds, while gold, which does not generate interest income, becomes less attractive. Meanwhile, the recent strengthening of the US dollar index has suppressed gold demand, exerting downward pressure on gold prices. Data shows that since the outbreak of the conflict, international gold futures have fallen approximately 13%.

Shanghai Gold Exchange: Notice on Strengthening Market Risk Control Work

Today, the Shanghai Gold Exchange issued a notice: recent factors affecting market stability are numerous, and precious metal prices have experienced significant volatility. All member units are advised to closely monitor market changes, prepare detailed risk emergency plans, and maintain market stability. Investors are also reminded to exercise risk awareness, control positions reasonably, and invest rationally.

Orange Persimmon Interactive · Urban Express Comprehensive Report

Editor: Cheng Jiayi

Reviewers: Mao Di, Wang Chenyu

Proofreader: Ye Qin