Gold Trading at Historic Highs in Hong Kong

Chow Sang Sang, a leading gold distributor in Hong Kong, has recently adjusted its buying and selling prices, reflecting the volatile gold market. On Monday, the company purchased gold ornaments from customers at HKD30,230 (US$3,894) per tael troy and sold them for HKD37,280, marking a significant 23% trading spread.

Record Prices and Market Dynamics

The buying price has seen an 0.8% increase since last Thursday, when gold reached a historic high of HKD30,930 per tael troy. Brian Fung, CEO of the Hong Kong Gold Exchange, attributes this surge to the uncertain stock and currency markets, driven by U.S. tariff policies. This uncertainty has prompted both investors and central banks to turn to gold as a safe haven.

Retailers Respond to Surging Demand

Hong Kong's jewelry shops are actively seeking to purchase more gold from the public to meet the increasing demand. Most retailers offer cash or products in exchange for gold jewelry, providing an opportunity for individuals to capitalize on the high prices.

Future Outlook

Experts like Carsten Menke from Julius Baer predict that the ongoing trade war and anticipated interest-rate cuts will continue to drive gold prices higher. Since early March, gold has risen approximately 17%, with recent U.S. tariff policies accelerating this trend.

Revised Forecasts

In light of these developments, several international organizations have revised their gold price forecasts for the year. Goldman Sachs, for example, has increased its end-2025 gold price forecast to $3,700 per ounce, citing stronger-than-expected demand from central banks and increased ETF inflows due to recession risks.