As families gather during the joyous festivities of the Spring Festival in China, conversations inevitably turn reflectiveThis period of togetherness often stirs mixed emotions as relatives catch up and share insights about their lives.

While the celebratory atmosphere is palpable, it hardly conceals the anxious discussions regarding investmentsA common thread emerges, where the topic of rising gold prices ignites a sense of both opportunity and doubt among family members.

In informal exchanges, it’s noted that gold prices have recently surged past 800 RMB per gram, compelling some to consider whether now is the right time to investFamily members share stories of their experiences in the gold market, adding a layer of cautious optimism blended with hesitation.

One family member, confident about gold's potential, urges others to invest, suggesting purchases from banks rather than jewelry stores to avoid counterfeit issuesThis practical advice reflects a broader trend where cautiousness prevails amid economic uncertainty.

Despite having the answers, many appear hesitant about plunging into the investment

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The collective uncertainty seems almost palpable in the room, encapsulating the dual nature of sentiment during the festive season.

As the year's festivities come to a close, gold prices rocket skywardLondon gold recently shattered the $2,940 per ounce mark, marking a new historical high that catches the attention of investors globallyThis surge sends ripples of exhilaration through the market, sparking interest anew.

Exciting Times!

The striking increase in London gold stands as a powerful symbol of the climbing price of goldConcurrently, COMEX gold prices soar near the $2,940 per ounce threshold, with domestic sellers like Chow Tai Fook and Luk Fook reporting gold prices breaching 870 RMB per gram.

In the stock market, shares of gold-related companies also are enjoying the benefits of this upward trend, with stocks like Lei Shen Tong Ling and Cai Bai reaching their limit-up on exchanges.

Though the high costs may deter some potential buyers, the allure of gold remains strong this Spring Festival, defying traditional reluctance during such price peaks.

According to the China Gold Association, gold consumption across the nation saw a 13% year-on-year increase during the Spring Festival of 2025. This marks a clear recovery in gold sales compared to recent festive seasons.

Reporting from Shenzhen’s Shui Bei gold market indicates a spike in demand for collectibles, gifts, gold bars, and decorative pieces, as customers flock to exchange old jewelry for new designs, significantly increasing the usual customer base during this season.

Furthermore, reports from CCTV reveal that the gold consumption trend remains vibrant in China, with gold jewelry and Dragon-themed gold bars gaining particular popularity among consumers.

Previous price hikes have chased away many buyers, but historical patterns suggest that when prices reach a particular threshold, consumer attitudes toward purchasing could transform significantly.

Essentially, the investment appeal of gold may surpass that of mere consumption as people look for safer investment avenues in the face of uncertain economic conditions.

Golden Opportunities

The volatile landscape of the macroeconomic world serves as a short-term catalyst for gold's price ascent

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Reports indicate potential new tariffs introduced by the U.S. government on imported steel and aluminum could further influence market conditions.

The news reverberated through financial markets, causing a stir in gold prices as investors reconsidered their strategiesSome analysts predict that risks related to policy decisions could result in heightened short-term fluctuations in gold trading.

According to the World Gold Council, January recorded a daily average trading volume of $264 billion in global gold markets, marking a 20% increase month-on-monthThe surge in trading activity is indicative of the underlying demand and investor interest.

Reflecting on the broader picture, geopolitical factors play a vital role in shaping investor sentimentThe World Gold Council anticipates that the demand for gold in 2024 could reach 4,974 tons, breaking previous records amid escalating geopolitical tensions and economic uncertainties.

In light of the Federal Reserve's shift from raising rates to lowering them, a noticeable trend has emerged among central banks globally looking to increase their gold reserves—further solidifying gold’s position as a seemingly unfailing asset.

The ongoing inflationary concerns indicate that until these are adequately addressed, the influence of inflation on gold demand remains intact—prompting clients to reevaluate their investment strategies.

According to Citic Securities, the ability for global commodities to emerge from a period of substantial re-inflation will largely depend on whether liquidity can provide a new cycle of financial easing.

Before Fed policy eases, the commodity hierarchy remains dominated by gold, copper, and oil

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As we await a new cycle of global manufacturing resurgence, it’s valuable to understand how pricing dynamics will shift in response to evolving economic conditions.

Yet, it appears that gold is likely to continue performing well in the long run, providing ample opportunities for investors willing to navigate the complexities of the market.

In fact, in looking at the long term, gold has been on a significant upswing since 2018, characterized by cyclical trends that recur approximately every twenty years in the gold market.

Furthermore, experts from Huatai Securities draw parallels between the current cycle of gold prices to historical phases observed in 1984 and 2001—a compelling narrative that suggests systemic movements in the markets.

Additionally, recent communications from the National Financial Regulatory Bureau suggest pilot programs aimed at facilitating insurance funds' investment in the gold market, signaling a potential influx of approximately 200 billion RMB into gold investments.

Conclusion

As the price of gold ascends, it reflects a gradual release of conservative investment behavior that many are exhibiting.

Now, with AI innovations like DeepSeek gaining traction, the soaring gold prices appear indicative of a wider global economic climate that hasn't yet reached its full leap forward.

Looking ahead to 2025, the advent of advanced production capabilities driven by AI will likely transform market dynamics, offering new chapters of opportunity that investors would be wise to pursue.

Ultimately, for those seeking a safe haven for their investments, gold may continue to command consensus as a preferred choice.

As the renowned cyclical researcher Zhou Jintao remarked, “Wealth in life relies on the Kondratiev wave.” In this instance, the power of this wave is landing squarely on gold.

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