China's gold market sees boost during Labor Day holiday

Fueled by attractive promotional activities, China's gold consumption market experienced a boost during the five-day Labor Day holiday, even as the international gold prices remain elevated.

The global gold price hit record highs 20 times in the first quarter of this year, according to a recent report from the World Gold Council.

As a result, global consumption of gold jewelry fell by 21 percent year on year, marking the lowest level since 2020.

In contrast, the demand for gold investment surged, with global investment reaching 551.9 tons, a remarkable 170 percent increase compared to the previous year.

This indicates that while gold prices have reached historic highs, the global demand for gold jewelry has declined, leading more investors to view gold as an attractive investment option.

A shopping mall in central China's Wuhan City saw consumers' demand for gold investment soar in the three days leading up to the holiday, with sales of gold bars and coins nearly tripling.

"As gold prices have fallen, we have launched various promotional activities and experienced a remarkable surge in overall sales," said Cui Jiwang, the person in charge of gold and jewelry counters at the shopping mall.

"We conduct live streaming promotions online to showcase images and styles of our popular products. Currently, around 15 to 20 percent of consumers visit our store after seeing these styles online," said Tan Yiying, head of a gold shop in Changzhou City of east China's Jiangsu Province.

Affected by the current high prices, lightweight gold products have gained popularity in China, such as small gold beans weighing only 0.3 grams.

"Even though gold prices are relatively high now, our lightweight and uniquely designed items remain popular among consumers and are selling well," said Wen Zhuqin, a gold salesperson in Yancheng City of Jiangsu.

Lightweight gold bars are also in high demand. Shuibei Jewelry Park, a renowned gold and jewelry market in south China's Shenzhen City, has been bustling with consumers, many of whom are looking to purchase lightweight gold bars. "Our consumers tend to prefer smaller weights when buying gold. Gold bars, especially those weighing five or 10 grams, have been in short supply recently," said Xu Jiaqi, a gold salesperson in Shuibei.

Many consumers also choose to sell the gold they purchased in previous years to capitalize on price differences, while others are opting to exchange old gold products for new items.

"The gold price has dropped by 60 to 70 yuan (about 8.25 to 9.63 U.S. dollars) per gram from its peak, yet most people still consider it too high. Therefore, the trade-in sales now make up the majority, accounting for 60 percent to 70 percent of our total sales," said You Meiyun, head of a gold shop in Changzhou.

China's gold market sees boost during Labor Day holiday

China's gold market sees boost during Labor Day holiday

Geoeconomic confrontation is the leading short-term global threat in 2026, the World Economic Forum (WEF) warned in its Global Risks Report 2026 released on Wednesday ahead of its annual meeting in Davos, Switzerland.

The report ranks geoeconomic confrontation as the top risk for 2026, followed by interstate conflict, extreme weather, societal polarization, and misinformation and disinformation. It also identifies geoeconomic confrontation as the most severe risk over the next two years.

"I think if there is to be one key takeaway from the report, it's that we are entering an age of competition and this new competitive order is then shaping current global risks, but it is also shaping and to some extent hindering our ability to actually cope with them. That's really the key takeaway. If we take a look at, the number one risk both for 2026 and two years out, it's dual economic confrontation. But then if we look at the risks 10 years out. It's really the climate and environment related risks. All of these things require global cooperation and that's where we're seeing a big backsliding in this new age of competition," said Saadia Zahidi, managing director of the WEF.

Economic risks showed the largest increase in the two-year outlook, with concerns over economic downturns, inflation, rising debt and potential asset bubbles intensifying amid geoeconomic tensions, the report said.

Environmental risks remain the most severe overall, led by extreme weather, biodiversity loss and critical changes to Earth systems. The report noted that three-quarters of respondents expect a turbulent environmental outlook.

Risks related to adverse outcomes of artificial intelligence rose sharply, climbing from 30th in the two-year horizon to fifth in the 10-year outlook, reflecting concerns over impacts on labor markets, society and security.

The 21st edition of the report draws on views from more than 1,300 experts, policymakers and industry leaders.

The WEF's annual meeting will be held in Davos from Jan 19 to 23 and draw nearly 3,000 guests from more than 130 countries and regions to participate.

"So overall, we are starting to see this shift away from what have traditionally been the ways in which people have been able to cooperate. Now, that is not to say that any of this is a foregone conclusion. And I think that's a really important message around the risks report. None of this is set in stone. All of this is in the hands of leaders. Whether they choose to cooperate and invest in resilience or whether they do not. So that's really what we'll be focused on next week in Davos bringing leaders together under this overall theme of 'a spirit of dialogue' and trying to reestablish relationships, cooperation and trust. That's the fundamental," said Zahidi.

WEF warns of rising geoeconomic risks in 2026