Gold's biggest weekly drop since 1983 fuels Shenzhen buying spree

China

Gold's biggest weekly drop since 1983 fuels Shenzhen buying spree

2026-03-23 15:12 Last Updated At：19:17

A dramatic plunge in gold prices, marking the largest single‑week drop since 1983, has triggered a buying frenzy in Shenzhen, south China.

At Shuibei market, the city's gold jewelry manufacturing and trading hub often seen as a barometer for China's bullion retail sector, consumers crowded counters to seize bargains amid the steep decline.

Gold futures on the COMEX division of the New York Mercantile Exchange on Friday dropped by over 3 percent to below 4,500 U.S. dollars per ounce, while silver futures plummeted nearly 7 percent to below 68 dollars per ounce.

Market analysts said that although geopolitical risks should have been beneficial to precious metals, rising oil prices reignited expectations of accelerated inflation. Additionally, cooling expectations for a Federal Reserve rate cut caused precious metal prices to fall against intuition.

The gold price slump in 1983 stemmed from oil-producing countries selling gold to obtain foreign exchange amid falling oil prices. That episode shocked investors by showing how macroeconomic forces could override gold's safe-haven appeal, a dynamic echoed in today's market.

In Shenzhen, the impact has been immediate. Local jewelers reported that prices fell by about 200 yuan per gram since the start of March, including a 100‑yuan drop this week alone.

"From the beginning of March to March 20, the price dropped by about 200 yuan per gram. This week alone, it has dropped by about 100 yuan per gram. The decline this week has been relatively significant," said Ma Shiying, the manager of a jewelry store.

After a week of consecutive price drops, consumer enthusiasm has surged. Managers at several gold shops reported that foot traffic this weekend increased by about 30 percent compared to the previous week.

Many buyers traveled specifically to the market to take advantage of the lower prices, with some consumers, who are planning to get married during the May Day holiday, purchasing traditional "three gold" or "five gold" wedding sets ahead of schedule due to the price drop.

"I am buying this for my wedding, so I opted for heavier pieces. I flew here specially from Beijing because the gold price dropped significantly last week," said Wang, a consumer.

"We are selling more bracelets, necklaces and more rings. March itself is considered the off-season, but due to the recent price adjustment, our customer flow has been higher compared to the same period last year," said Chen Zefeng, the manager of another jewelry store.

Market observers note that volatility in global bullion prices may continue, with traders watching U.S. monetary policy, oil prices, and currency movements for further signals.

Israel-Lebanon agreement faces challenges in implementation: Israeli experts

The framework agreement recently reached between Israel and Lebanon faces serious challenges in its implementation, according to Israeli experts.

After several days of negotiations brokered by the United States, Israel and Lebanon reached a new trilateral framework agreement aimed at ending the conflict in southern Lebanon.

The agreement was signed by the U.S., Israel and Lebanon on Friday at the U.S. State Department in Washington, D.C. It calls for the disarming of all non-governmental armed factions in Lebanon, the deployment of the Lebanese army in southern areas of the country and a complete Israeli withdrawal back to the border.

Hezbollah says it will oppose the agreement and work to defeat it politically and practically. The group did not wait long before making a very public stand.

Just minutes after the announcement in Washington, thousands of Hezbollah supporters took to the streets of the Lebanese capital Beirut late Friday vowing to stand firmly against the agreement.

Parliament members aligned with Hezbollah added that the government has no authority to sign such a deal and it will therefore never stand.

"There is no way any Lebanese government could implement any agreement signed with Israel because it doesn't have the strength, it doesn't have the means and because of Hezbollah being in the opposition and holding the government by its throat," said Dr. Jacques Neriah, an analyst for the Middle East at the Jerusalem Center for Security and Foreign Affairs.

Israeli Prime Minister Benjamin Netanyahu already said the Israeli Defense Forces (IDF) will not withdraw from the security zone they maintain in Lebanese territory before Hezbollah is disarmed.

"It is up to the seriousness by the Lebanese military and until such time that the IDF sees that the Lebanese army is serious and can take the job, only then does Israel retreat and there are pilot projects and I think it's the best way to go about it," said Or Yissachar, executive director of Israeli think tank David Institute for Security Policy.