As the New Year and the Spring Festival approach, the gold market in Shenzhen City, south China's Guangdong Province, is experiencing a peak seasonal demand.
Shuibei market, a gold jewelry manufacturing and trading hub in Shenzhen, consumer flow and gold sales are both seeing a spike.
With international gold prices lowered recently, some traditional retail gold stores have seen prices drop below 800 yuan (more than 109 U.S. dollars) per gram.
At Shuibei market, gold prices even have come down to 622 yuan (more than 85 U.S. dollars) per gram.
The price drop, combined with the approach of holidays, has sparked a rush in the gold market.
On weekends, the market has been buzzing with activity, drawing crowds of eager shoppers.
"The foot traffic has increased by about 40 percent compared to last month. Especially on weekends, the crowd is so large that some salespeople struggle to keep up with demand," said Wu Qian, a gold retailer at Shuibei market.
Despite the price adjustment, consumers remain cautious about purchasing large-weight gold items.
As a result, small-weight gold jewelry has become more popular. Additionally, gold pieces featuring the snake -- the zodiac sign of 2025 -- are trending, with many wholesalers crowded with retailers from across the country.
"I'm here mainly to buy the 12 Chinese zodiac animal-themed bracelets, especially the ones featuring the snake. Besides that, I'll also be picking up related products like necklaces, pendants, earrings, and rings," said a retailer from southwest China's Sichuan Province.
Shenzhen's gold market sees consumption upsurge
U.S. tariff policies are posing risks to domestic consumption and financial markets, fueling inflation, disrupting business operations, and eroding global confidence in the U.S. dollar, said Daryl Guppy, an international financial analyst and CEO of Guppy Traders.
This comes as tariff measures introduced by Donald Trump administration are straining the domestic economy and deepening uncertainty nationwide, according to various media reports. CNN reports that the government's "chaotic trade wars" have left small businesses struggling, with soaring costs, disrupted supply chains, and stifled growth and expansion plans.
Meanwhile, three former U.S. presidents - Bill Clinton, Barack Obama, and Joe Biden - have warned against the Trump administration's policies in their recent remarks, breaking the tradition of former presidents refraining from publicly criticizing the sitting president, as noted by the Washington Post.
In a recent interview with China Global Television Network (CGTN), Guppy discussed the significant negative impacts of U.S. tariff measures, particularly their toll on the domestic economy.
"There are three domestic risks. The first is the inevitable increase in inflation. It's U.S. consumers that carry the burden of tariffs. The second is the financial markets. They are just beginning to fully appreciate the destructive impact tariffs are having on their business model. That’s why we are seeing some changes or delays in selected tariff categories. The third is the bond market, because this erratic tariff policy makes the world lose trust in the U.S. dollar and the security of U.S. treasuries," he said.
Guppy criticized the so-called "strategies" employed by Trump to boost government revenue during economic strain, highlighting that the president is manipulating markets to benefit his allies, disregarding the long-term consequences for the global trade system.
"The United States is bankrupt, and Trump is skilled at handling bankruptcy. First, you cut costs, that's DOGE, that's Elon Musk. Second, you generate income any way you can, that’s tariffs. Third, you reduce the cost of refinancing loans, that’s crushing the market and the Dow. Fourth, you try to defer loan repayments and that may involve converting debt into 50 or 100-year bonds or using a synthetic default on the payment of treasuries to stop payments to selected countries that hold U.S. treasuries," he said.
"Trump doesn't care what the global trade system will look like, as long as he is able to stave off bankruptcy and manipulate the market to make money for his friends," the financial expert added.
Trump's tariff measures wreak havoc on economy: expert
