Gold extends record advance on safe-haven bets

On Wednesday, spot gold surged past $5,280 per ounce, continuing to break historical records, with year-to-date rises exceeding 20 percent.

Spot silver also reached a peak of $116 per ounce before settling to trade around $115.3.

Goldman Sachs, in its latest report, raised its year-end gold price forecast from $4,900 to $5,400 per ounce, driven by strengthening demand from both private investors and central banks.

This rally has swiftly translated into higher retail costs for gold jewelry across China. Major domestic jewelry brands, including Chow Tai Fook, Lao Feng Xiang, Chow Sang Sang, and Laomiao Gold, adjusted their prices upward on Wednesday, with pure gold jewelry now quoted between 1,612 yuan ($232.03) and 1,620 yuan per gram.

Wang Xiaoli, a salesperson at a Lukfook Jewellery store in Beijing, said that she frequently receives inquiries from customers about the store's gold offerings. "The price of gold has risen by almost 200 yuan per gram in just a week," she said." Many customers are buying pure gold jewelry and bullion bars, seeing them as investment opportunities."

Amid this gold price surge, a new wave of retail investors is also entering the market, seeking to capitalize on the precious metal's rising value and as a safe haven amid mounting global uncertainties. The escalating geopolitical risks — from US-European tensions over Greenland to ongoing instability in Ukraine, Venezuela, and the Middle East — are prompting investors to seek shelter in the precious metal.

Beijing-based resident Wang Lin is among those who have recently discovered the investment potential of gold.

"I started buying gold in April 2025, after seeing bloggers on Red-Note discussing the investment opportunities," Wang said, reflecting on what she called her "gold awakening."

"I bought 80 grams of gold at a Postal Savings Bank unit near my workplace," she said, adding that she has since earned about 23,000 yuan in returns. Wang, whose investment logic is simple and grounded, added that, "Buying gold is like saving. Even if I bought at a high price, it still feels safer than investing in stocks."

Li Yuefeng, a researcher at the Beijing Gold Economy Development Research Center, said: "Concerns over potential trade wars, along with the US leadership's recent comments about allowing the greenback to decline, have fueled fears of a competitive currency devaluation. As a result, gold prices have surged."

Li believes gold prices could test the range of 5,300–5,700 yuan per gram in the short term, with a potential peak around 5,500 yuan. However, after this rally, a corrective phase is likely, he added.