Gold prices hit a new high

International gold prices hit a new high

On the 11th local time, driven by the expectation of US tariff policy, the market risk aversion continued to heat up. The intraday price of international spot gold (London gold) continued to rise, reaching an intraday record high of US$2,942.70 per ounce. This is also the eighth time that the international spot gold price has set a new record high since the beginning of this year.

After hitting an intraday high on the 11th, the international spot gold price fell back. As of 5:00 Beijing time on the 12th, the international spot gold (London gold) was reported at US$2,897.72 per ounce, a decrease of 0.35% from yesterday.

Recently, a large amount of gold and other precious metals have been shipped to the United States

International gold prices continue to hit record highs. At the same time, a large amount of spot gold is pouring into New York, the United States from London, the United Kingdom. Market analysts believe that the main reason is that investors are worried that the Trump administration of the United States may impose high tariffs on gold and other precious metals, so they take action in advance.

London and New York are currently the two most important gold trading markets in the world, with spot trading mainly conducted in London and futures trading in New York.

The large amount of gold pouring into New York has depleted London’s gold reserves. It is reported that London gold market participants need to wait in line for 4 to 8 weeks to withdraw gold from the Bank of England, while it normally only takes a few days or a week.

Many market participants believe that since gold and silver are monetary metals, the Trump administration is unlikely to impose tariffs on them. However, in the current unclear situation, global traders can only prepare for both situations at the same time, and the future price trend of the gold market is still full of uncertainty.

It is reported that the international gold price may continue to rise in 2025. First, after Trump took office, the trend of deglobalization may accelerate again, which is conducive to the safe-haven property of gold; secondly, the global central bank’s gold purchase process is expected to continue, which will also help support the price of gold; finally, the trend of US fiscal expansion may continue, which is also conducive to the rise in gold prices.

“Looking ahead to 2025, it is expected that the gold price will maintain a volatile upward trend and may break through $3,000, which is mainly supported by global geopolitical tensions, monetary policy changes, and the central bank’s increase in gold holdings.

Recently, driven by the rising demand for safe-haven, the international gold price has hit new highs. In London, the price of gold jewelry remains high, and many gold jewelry stores are not doing as well as before.

Hatton Garden is a well-known jewelry trading area in London, England, where about 300 diamond, gold and jewelry dealers gather. In recent times, due to the soaring gold prices, many shops have been quiet and sales have declined significantly.

Due to the rapid rise in gold prices, some shops in Hatton Garden have been closed for risk control considerations. Gold is no longer used to design jewelry. At the same time, given that gold prices are at a historical high, many British consumers have sold the gold jewelry they bought before to make a profit.

World Gold Council: High gold prices suppress gold jewelry consumption

Data from the World Gold Council shows that rising gold prices have limited the enthusiasm for gold jewelry consumption. In 2024, the annual global consumption of gold jewelry fell by 11%, but the consumption of gold jewelry increased by 9%. The association predicts that the central bank’s gold buying boom and investor risk aversion may continue to push up gold demand throughout 2025, but on the other hand, as high gold prices and slowing economic growth have suppressed consumer purchasing power, demand for gold jewelry may continue to weaken, putting pressure on the jewelry industry.