Zhong Guo Jing Ji Wang·2025-10-20 09:01Core Viewpoint - Recent surges in international and domestic gold prices have led to multiple jewelry brands announcing price increases for gold products, reflecting a broader trend in the market [1][5]. Group 1: Price Increases by Companies - Lao Pu Gold announced its third price increase of the year, with retail prices expected to rise by 12% to 18% by the end of October [2]. - Chow Sang Sang has already implemented price increases for gold jewelry, with price hikes ranging from 25% to 35% since October 16 [4]. - Chow Tai Fook plans to adjust its gold jewelry prices by approximately 15% by the end of the month [4]. Group 2: Factors Driving Gold Price Increases - The rapid increase in gold prices began in late August, with a rise of over 25% in London gold spot prices from August 21 to October 15 [5]. - Key drivers include rising global risk aversion, declining confidence in the US dollar, and expectations of interest rate cuts by the Federal Reserve [5][7]. - Central banks worldwide have been increasing their gold reserves, with a reported addition of 166 tons in Q2 of this year, contributing to the upward pressure on gold prices [5]. Group 3: Future Outlook for Gold Prices - Market institutions predict that gold prices may continue to rise due to factors such as further interest rate cuts by the Federal Reserve, high US government debt, and increasing geopolitical risks [7]. - Goldman Sachs has raised its forecast for gold prices in December 2026 from $4,300 to $4,900 per ounce, citing diversification in investments as a potential driver for increased ETF holdings [7]. - Despite the bullish outlook, there are concerns about potential profit-taking and the impact of alternative investments, such as cryptocurrencies, on gold's safe-haven status [7].