One-kilogram investment silver bars are on display at a gold shop in Hangzhou, East China's Zhejiang Province on January 15, 2026. Photo: VCG

International gold prices have been on a downward trend since early June, with the spot gold dipping below $4,200 per ounce by 1 pm (Beijing time), virtually erasing all of this year's earlier gains. Amid the slide, market sentiment in China is shifting - investor enthusiasm has cooled noticeably, and some would-be gold consumers have adopted a wait-and-see stance, hoping for a further dip before committing.

At a counter of Caibai Jewelry in Beijing, a customer surnamed Zhao was considering a gold bracelet. She told the Global Times on Wednesday that the current price of around 1,300 yuan ($191.95) per gram is still relatively high compared with several years ago and thus she may hold off on buying one until the gold price stabilizes.

At another gold counter in Beijing, a salesperson told the Global Times that there are fewer customers now due to the gold price drop, but market demand for gold still exists - mainly for weddings and gifts for children. That said, gold accessories featuring Guochao IPs, also known as China-chic, are gaining strong traction among young consumers, with their blend of cultural meaning and craftsmanship making them a standout category, the salesperson said.

However, in the eyes of Liu Ge, a gold investor in Beijing, gold price remains too high. Liu said he bought some gold for investment at its peak, and the subsequent price drops kept him on edge. 

Gold price has been down for four straight days since June 5, and it's back to where it was at the end of 2025. On Wednesday, spot gold dipped below $4,200 per ounce by 1 pm (Beijing time).

Chinese gold jewelry companies' stocks finished lower on Wednesday. Sichuan Gold closed down 2.72 percent at 40.11 yuan, Shandong Gold Mining Co fell 2.53 percent to 26.61 yuan, and Hunan Gold Corp declined 3.04 percent to 22.98 yuan.

"The recent sharp decline in gold prices is a technical correction rather than a trend reversal," Zhou Yinghao, an industry analyst, told the Global Times on Wednesday.

In the medium- to long-term, factors that support the gold price remain intact. On the one hand, central banks across the world continue buying gold. On the other hand, against the backdrop of ballooning global debt and deepening geopolitical fragmentation, gold's monetary feature will keep strengthening. The probability of a medium-term upward trend of gold price remains significantly higher than that of a sustained downtrend, Zhou said.

Amid central banks' demand to diversify foreign exchange reserves and ensure their safe and stable operations, central banks across the world continue to increase holdings of gold.

Bullion accounted for 27 percent of all global central bank reserve assets at the end of 2025, replacing US government bonds as the world's largest reserve asset, according to a report published on June 2 by the European Central Bank, the Financial Times reported.

The People's Bank of China (PBC), the country's central bank, expanded its gold reserves for the 19th consecutive month in May, adding 320,000 ounces to reach 74.96 million ounces (approximately 2,332 tons), according to data released by the PBC on Sunday.

In a note published on Tuesday, JP Morgan Global Research analysts said they expect gold to reach $6,000 per ounce by year-end, with $6,300 per ounce a possibility in 2027. However, the analysts noted that future demand and price stability remain dependent on the resolution of ongoing geopolitical conflicts and US Federal Reserve policy.

However, it is worth noting that the core value of investing in gold lies in hedging against extreme risks and currency depreciation, rather than chasing quick profits. It demands strategic conviction," Zhou said.