The Chinese gold market is a tale of two sectors. The jewelry sector is struggling due to high prices, while gold investment has been red-hot.

According to data from the National Bureau of Statistics (NBS), the Producer Price Index (PPI) for industrial producers fell by 0.4% MoM in May, the same rate of decline as the previous month. On a YoY basis, it decreased by 3.3%, with the rate of decline expanding by 0.6 percentage points compared to the previous month. The main reasons for the MoM decline in PPI this month are as follows: Firstly, international imported factors influenced the price decline in related domestic industries. The downturn in international crude oil prices affected the price decline in domestic petroleum-related industries, with prices in the oil and natural gas extraction industry falling by 5.6%, prices in refined petroleum product manufacturing falling by 3.5%, and prices in the chemical raw materials and chemical products manufacturing industry falling by 1.2%. Collectively, these three industries contributed to approximately 0.23 percentage points of the MoM decline in PPI, accounting for over half of the total decline. Secondly, there was a phased downturn in the prices of certain domestic energy and raw materials. Coal demand was in the off-season, with sufficient coal reserves at power plants and ports. Additionally, the low cost and strong substitution effect of new energy power generation led to a 3.0% decline in prices in the coal mining and washing industry and a 1.1% decline in coal processing prices. Increased high-temperature and rainy weather in south China affected the construction of some real estate and infrastructure projects. Coupled with the adequate supply of building materials such as steel and cement, prices in the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry both fell by 1.0%. Collectively, these four industries contributed to approximately 0.18 percentage points of the MoM decline in PPI. In May 2025, the Producer Price Index for industrial producers fell by 3.3% YoY. In May 2025, the Producer Price Index for industrial producers nationwide fell by 3.3% YoY and 0.4% MoM, while the purchasing price index for industrial producers fell by 3.6% YoY and 0.6% MoM. On average from January to May, both the ex-factory prices and purchasing prices for industrial producers fell by 2.6% compared to the same period last year. I. Year-on-Year Changes in Producer Prices for Industrial Products In May, among the ex-factory prices for industrial producers, the price of means of production fell by 4.0%, contributing to a decline of approximately 2.98 percentage points in the overall level of ex-factory prices for industrial producers. Specifically, prices in the mining industry fell by 11.9%, prices in the raw material industry fell by 5.4%, and prices in the processing industry fell by 2.8%. The price of means of subsistence fell by 1.4%, contributing to a decline of approximately 0.36 percentage points in the overall level of ex-factory prices for industrial producers. Specifically, food prices fell by 1.4%, clothing prices remained flat, general daily necessities prices rose by 0.6%, and durable consumer goods prices fell by 3.3%. Among the purchasing prices for industrial producers, prices in the fuel and power category fell by 9.8%, prices in the ferrous metal materials category fell by 7.3%, prices in the chemical raw materials category fell by 5.4%, prices in the agricultural and sideline products category fell by 2.6%, prices in the textile raw materials category fell by 2.5%, and prices in the building materials and non-metals category fell by 1.1%. Prices in the non-ferrous metal materials and wire category rose by 4.6%. II. Month-on-Month Changes in Industrial Producer Prices In May, among the ex-factory prices of industrial producers, the prices of means of production decreased by 0.6%, contributing to a decline of approximately 0.44 percentage points in the overall ex-factory price level of industrial producers. Specifically, prices in the mining industry decreased by 2.5%, prices in the raw material industry decreased by 0.9%, and prices in the processing industry decreased by 0.3%. Prices of consumer goods remained flat. Among them, food prices decreased by 0.1%, clothing prices increased by 0.2%, and prices of general daily necessities and durable consumer goods both increased by 0.1%. Among the purchase prices of industrial producers, prices of fuels and power decreased by 2.1%, prices of chemical raw materials decreased by 1.2%, prices of ferrous metal materials decreased by 0.6%, prices of textile raw materials decreased by 0.4%, prices of building materials and non-metals decreased by 0.2%, and prices of non-ferrous metal materials and wires decreased by 0.1%; prices of agricultural and sideline products remained flat. CPI Slightly Declined in May 2025, While Core CPI Increased on a YoY Basis —Interpretation of CPI and PPI Data for May 2025 by Dong Lijuan, Chief Statistician of the Urban Department, National Bureau of Statistics (NBS) In May, the Consumer Price Index (CPI) decreased by 0.2% MoM and 0.1% YoY. Excluding food and energy prices, core CPI increased by 0.6% YoY, with the growth rate expanding by 0.1 percentage points from the previous month. The Producer Price Index (PPI) for industrial producers decreased by 0.4% MoM, with the decline remaining the same as the previous month, and decreased by 3.3% YoY, with the decline expanding by 0.6 percentage points from the previous month. China is boosting consumption with greater intensity and more precise measures, fostering the growth of new quality productive forces, improving the supply-demand relationship in some areas, and prices are showing positive changes. I. CPI Slightly Declined, While Core CPI Increased on a YoY Basis The shift from an increase to a decrease in CPI on a MoM basis was mainly influenced by the decline in energy prices. Energy prices decreased by 1.7% MoM, contributing to a decline of approximately 0.13 percentage points in CPI on a MoM basis, accounting for nearly 70% of the total decline in CPI. Among them, gasoline prices decreased by 3.8%, with the decline expanding by 1.8 percentage points from the previous month. Food prices decreased by 0.2%, with the decline being 1.1 percentage points less than the seasonal level, contributing to a decline of approximately 0.04 percentage points in CPI on a MoM basis. Among them, the market supply of seasonal vegetables increased, and fresh vegetable prices decreased by 5.9%; prices of eggs, pork, and poultry meat slightly decreased, with declines ranging from 0.3% to 1.0%; affected by factors such as heavy rainfall in some areas and the summer fishing moratorium, the supply of fresh fruits, freshwater fish, and marine fish decreased, and prices increased by 3.3%, 3.1%, and 1.5%, respectively. Consumer demand continued to recover, coupled with the impact of holidays and cultural, sports, and entertainment activities held across the country. As a result, hotel accommodation and tourism prices rose by 4.6% and 0.8%, respectively, both exceeding seasonal levels. The increase in hotel accommodation prices reached a new high for the same period in the past decade. With the arrival of the summer season and the launch of new summer clothing collections, clothing prices rose by 0.6%. The CPI declined slightly YoY, with the decline remaining the same as the previous month. Among them, energy prices fell by 6.1% YoY, with the decline widening by 1.3 percentage points from the previous month, contributing to a decrease of approximately 0.47 percentage points in the CPI YoY, which was the main factor behind the CPI's YoY decline. Policies aimed at boosting consumption continued to show positive effects, with prices in some areas showing positive changes. Core CPI rose by 0.6% YoY, with the increase widening by 0.1 percentage point from the previous month. Among them, industrial consumer goods prices excluding energy rose by 0.6%, with the increase widening by 0.2 percentage point from the previous month. Prices of gold jewelry, home textiles, and cultural and recreational durable consumer goods rose by 40.1%, 1.9%, and 1.8%, respectively, with all increases widening. Prices of gasoline-powered passenger cars and new energy passenger cars fell by 4.2% and 2.8%, respectively, with the declines narrowing. Service prices rose by 0.5%, with the increase widening by 0.2 percentage point from the previous month. Among services, rental fees for transportation vehicles, airfares, and tourism prices all turned from decline to increase, rising by 3.6%, 1.2%, and 0.9%, respectively. II. PPI Remained Low, with Prices in Some Sectors Showing Marginal Improvement The main reasons for the MoM decline in PPI this month are as follows: First, international imported factors influenced the decline in domestic prices of related industries. The decline in international crude oil prices affected the decline in domestic prices of petroleum-related industries, with prices in the oil and natural gas extraction industry falling by 5.6%, prices in the refined petroleum product manufacturing industry falling by 3.5%, and prices in the chemical raw materials and chemical products manufacturing industry falling by 1.2%. These three industries collectively contributed to a decrease of approximately 0.23 percentage points in PPI MoM, accounting for more than half of the total decline. Second, domestic prices of some energy and raw materials declined on a temporary basis. Coal demand was in the off-season, with sufficient coal reserves at power plants and ports. Additionally, the low cost and strong substitution effect of new energy power generation led to a 3.0% decline in prices in the coal mining and washing industry and a 1.1% decline in coal processing prices. Increased high-temperature and rainy weather in south China affected the construction of some real estate and infrastructure projects. Coupled with sufficient supply in the production of building materials such as steel and cement, prices in the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry both fell by 1.0%. These four industries collectively contributed to a decrease of approximately 0.18 percentage points in PPI MoM. Coupled with factors such as a higher comparison base in the same period last year, the YoY decline in PPI widened by 0.6 percentage points from the previous month. However, from the perspective of marginal changes, China has intensified the implementation of macro policies, leading to improvements in the supply-demand relationship in some industries and a positive trend in prices in certain sectors. First, the continuous growth of new consumption momentum has driven a YoY rebound in prices of consumer goods. The continuous effectiveness of policies aimed at boosting consumption has led to the release of demand for some consumer goods, driving a rebound in prices in related industries. The MoM decline in consumer goods prices turned to flatness from a 0.2% decrease in the previous month. Among them, prices for clothing, general daily necessities, and durable consumer goods rose by 0.2%, 0.1%, and 0.1%, respectively, driving the YoY decline in consumer goods prices to narrow by 0.2 percentage points compared to the previous month. From an industry perspective, prices for arts and crafts and ceremonial goods manufacturing rose by 12.8% YoY, footwear manufacturing prices increased by 0.8%, and computer whole machine manufacturing prices rose by 0.2%. The YoY declines in prices for household washing machines, television manufacturing, and automobile whole vehicle manufacturing narrowed by 1.6, 1.4, and 0.6 percentage points, respectively, compared to the previous month. Second, the development of industries such as high-end equipment manufacturing has driven a YoY increase in prices in related sectors. The steady progress in the high-end, intelligent, and green transformation of industrial development, along with the expansion of demand for high-tech products, has led to a YoY increase in prices in related industries. Prices for integrated circuit packaging and testing series, as well as aircraft manufacturing, both rose by 3.6%. Prices for wearable smart device manufacturing increased by 3.0%, microwave communication equipment prices rose by 2.1%, server prices increased by 0.8%, and prices for semiconductor device manufacturing equipment rose by 0.7%. In addition, the supply-demand relationship in new energy industries such as PV and lithium batteries has improved, with narrower YoY declines in prices. Prices for PV equipment and components manufacturing, as well as lithium-ion battery manufacturing, fell by 12.1% and 5.0%, respectively, with declines narrowing by 0.4 and 0.3 percentage points, respectively, compared to the previous month. Recommended Reading: 》National Bureau of Statistics (NBS): CPI Down 0.1% YoY and 0.2% MoM in May

According to data from the National Bureau of Statistics (NBS), in May, the national consumer price index (CPI) decreased by 0.1% YoY. Specifically, prices in urban areas remained flat, while those in rural areas decreased by 0.4%. Food prices decreased by 0.4%, while non-food prices remained flat. Prices of consumer goods decreased by 0.5%, while service prices increased by 0.5%. On average from January to May, the national CPI decreased by 0.1% compared to the same period last year. In May, the national CPI decreased by 0.2% MoM. In May 2025, the national CPI decreased by 0.1% YoY. The NBS announced that in May, the national CPI decreased by 0.1% YoY. Specifically, prices in urban areas remained flat, while those in rural areas decreased by 0.4%. Food prices decreased by 0.4%, while non-food prices remained flat. Prices of consumer goods decreased by 0.5%, while service prices increased by 0.5%. On average from January to May, the national CPI decreased by 0.1% compared to the same period last year. In May, the national CPI decreased by 0.2% MoM. In May, the Producer Price Index (PPI) for industrial producers decreased by 0.4% MoM, the same rate of decrease as the previous month, and decreased by 3.3% YoY, with the rate of decrease expanding by 0.6 percentage points compared to the previous month. In May 2025, the national CPI decreased by 0.1% YoY. Specifically, prices in urban areas remained flat, while those in rural areas decreased by 0.4%. Food prices decreased by 0.4%, while non-food prices remained flat. Prices of consumer goods decreased by 0.5%, while service prices increased by 0.5%. On average from January to May, the national CPI decreased by 0.1% compared to the same period last year. In May, the national CPI decreased by 0.2% MoM. Specifically, prices in urban areas decreased by 0.2%, while those in rural areas also decreased by 0.2%. Food prices decreased by 0.2%, while non-food prices also decreased by 0.2%. Prices of consumer goods decreased by 0.3%, while service prices remained flat. I. Year-on-Year Changes in Prices of Various Goods and Services In May, prices of food, tobacco, and alcohol increased by 0.1% YoY, contributing to an increase of approximately 0.02 percentage points in the CPI. Among food items, prices of fresh fruits increased by 5.5%, contributing to an increase of approximately 0.12 percentage points in the CPI; prices of aquatic products increased by 2.5%, contributing to an increase of approximately 0.05 percentage points in the CPI; prices of meat increased by 0.7%, contributing to an increase of approximately 0.02 percentage points in the CPI, with pork prices increasing by 3.1%, contributing to an increase of approximately 0.04 percentage points in the CPI; prices of fresh vegetables decreased by 8.3%, contributing to a decrease of approximately 0.17 percentage points in the CPI; prices of eggs decreased by 3.5%, contributing to a decrease of approximately 0.02 percentage points in the CPI; prices of grains decreased by 1.4%, contributing to a decrease of approximately 0.02 percentage points in the CPI. Prices in the other seven categories saw six increases and one decrease YoY. Specifically, prices for other goods and services, clothing, and education, culture, and recreation rose by 7.3%, 1.5%, and 0.9%, respectively, while prices for healthcare, housing, and household goods and services increased by 0.3%, 0.1%, and 0.1%, respectively. In contrast, prices for transportation and communication fell by 4.3%. II. Month-on-Month Changes in Prices of Various Goods and Services In May, prices for food, tobacco, and liquor decreased by 0.2% MoM, contributing to a decrease of approximately 0.05 percentage points in the CPI. Among food items, prices for fresh vegetables decreased by 5.9%, contributing to a decrease of approximately 0.12 percentage points in the CPI; prices for eggs decreased by 0.9%, contributing to a decrease of approximately 0.01 percentage points in the CPI; prices for meat decreased by 0.2%, contributing to a decrease of approximately 0.01 percentage points in the CPI, with pork prices decreasing by 0.7%, contributing to a decrease of approximately 0.01 percentage points in the CPI. Conversely, prices for fresh fruit increased by 3.3%, contributing to an increase of approximately 0.07 percentage points in the CPI, and prices for aquatic products increased by 0.8%, contributing to an increase of approximately 0.02 percentage points in the CPI. Prices in the other seven categories saw four increases, one flat, and two decreases MoM. Specifically, prices for other goods and services and clothing increased by 0.7% and 0.6%, respectively, while prices for education, culture, and recreation and healthcare both increased by 0.1%. Housing prices remained flat. Prices for transportation and communication and household goods and services decreased by 1.2% and 0.8%, respectively. CPI Slightly Declined in May 2025, with YoY Growth in Core CPI Expanding —Interpretation of CPI and PPI Data for May 2025 by Dong Lijuan, Chief Statistician of the Urban Department, National Bureau of Statistics In May, the Consumer Price Index (CPI) decreased by 0.2% MoM and 0.1% YoY. Excluding food and energy prices, core CPI increased by 0.6% YoY, with the growth rate expanding by 0.1 percentage points from the previous month. The Producer Price Index for Industrial Products (PPI) decreased by 0.4% MoM, with the decline remaining the same as the previous month, and decreased by 3.3% YoY, with the decline expanding by 0.6 percentage points from the previous month. China is boosting consumption with greater intensity and more precise measures, fostering the growth of new quality productive forces, and improving the supply-demand relationship in some areas, leading to positive changes in prices. I. CPI Slightly Declined, with YoY Growth in Core CPI Expanding The shift from an increase to a decrease in CPI MoM was mainly influenced by the decline in energy prices. Energy prices decreased by 1.7% MoM, contributing to a decrease of approximately 0.13 percentage points in the CPI MoM, accounting for nearly 70% of the total decline in the CPI. Among them, gasoline prices decreased by 3.8%, with the decline expanding by 1.8 percentage points from the previous month. Food prices decreased by 0.2%, with the decline being 1.1 percentage points less than the seasonal level, contributing to a decrease of approximately 0.04 percentage points in the CPI MoM. Among these, the market supply of seasonal vegetables increased, leading to a 5.9% decline in fresh vegetable prices. Prices of eggs, pork, and poultry meat remained stable with slight decreases, ranging from 0.3% to 1.0%. Affected by factors such as heavy rainfall in some regions and the summer fishing moratorium, the supply of fresh fruits, freshwater fish, and marine fish decreased, with prices rising by 3.3%, 3.1%, and 1.5%, respectively. As consumer demand continued to recover, coupled with the impact of holidays and cultural and recreational activities held across the country, hotel accommodation and tourism prices rose by 4.6% and 0.8%, respectively, both exceeding seasonal levels. The increase in hotel accommodation prices reached a record high for the same period in the past decade. With the arrival of the summer season and the launch of new summer clothing collections, clothing prices rose by 0.6%. The CPI declined slightly YoY, with the same rate of decrease as the previous month. Among these, energy prices fell by 6.1% YoY, with the rate of decrease expanding by 1.3 percentage points from the previous month, contributing to a decrease of approximately 0.47 percentage points in the CPI YoY, which was the main factor behind the CPI's YoY decline. Policies aimed at boosting consumption continued to show positive effects, with prices in some sectors showing positive changes. Core CPI rose by 0.6% YoY, with the rate of increase expanding by 0.1 percentage point from the previous month. Among these, industrial consumer goods prices excluding energy rose by 0.6% YoY, with the rate of increase expanding by 0.2 percentage point from the previous month. Prices of gold jewelry, home textiles, and cultural and recreational durable consumer goods rose by 40.1%, 1.9%, and 1.8%, respectively, with all rates of increase expanding. Prices of gasoline-powered passenger cars and new energy passenger cars fell by 4.2% and 2.8%, respectively, with the rates of decrease narrowing. Service prices rose by 0.5%, with the rate of increase expanding by 0.2 percentage point from the previous month. Among services, rental fees for transportation vehicles, airfares, and tourism prices all turned from decline to increase, rising by 3.6%, 1.2%, and 0.9%, respectively. II. PPI Remained Low, with Marginal Improvements in Prices in Some Sectors The main reasons for the MoM decline in PPI this month are as follows: Firstly, international imported factors influenced the decline in domestic prices of related industries. The decline in international crude oil prices affected the decline in domestic prices of petroleum-related industries, with prices in the oil and natural gas extraction industry falling by 5.6%, prices in refined petroleum product manufacturing falling by 3.5%, and prices in the chemical raw materials and chemical products manufacturing industry falling by 1.2%. These three industries collectively contributed to a decrease of approximately 0.23 percentage points in PPI MoM, accounting for more than half of the total decline. Secondly, domestic prices of some energy and raw materials declined temporarily. Coal demand was in the off-season, with sufficient coal reserves at power plants and ports. Additionally, the low cost and strong substitution effect of new energy power generation led to a 3.0% decline in prices in the coal mining and washing industry and a 1.1% decline in coal processing prices. Increased high-temperature and rainy weather in south China affected the construction of some real estate and infrastructure projects. Coupled with sufficient production and supply of building materials such as steel and cement, prices in the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry both fell by 1.0%. These four industries collectively contributed to a decrease of approximately 0.18 percentage points in PPI MoM. Compounded by factors such as a higher base for comparison with the same period last year, the YoY decline in PPI expanded by 0.6 percentage points compared to the previous month. However, from the perspective of marginal changes, with the intensified implementation of macro policies in China, the supply-demand relationship in some industries has improved, and prices in certain areas have shown a positive trend. Firstly, the continuous growth of new consumption momentum has driven a YoY rebound in prices of consumer goods. The continuous effectiveness of policies aimed at boosting consumption has led to the release of demand for some consumer goods, driving up prices in related industries. The MoM decline in consumer goods prices turned to flatness from a 0.2% decrease in the previous month. Among them, prices for clothing, general daily necessities, and durable consumer goods rose by 0.2%, 0.1%, and 0.1%, respectively, driving the YoY decline in consumer goods prices to narrow by 0.2 percentage points compared to the previous month. From an industry perspective, prices for arts and crafts and ceremonial items manufacturing rose by 12.8% YoY, footwear manufacturing prices increased by 0.8%, computer whole machine manufacturing prices rose by 0.2%, and the YoY declines in prices for household washing machines, television manufacturing, and automobile whole vehicle manufacturing narrowed by 1.6, 1.4, and 0.6 percentage points, respectively, compared to the previous month. Secondly, the development of industries such as high-end equipment manufacturing has driven a YoY increase in prices in related industries. The steady advancement of high-end, intelligent, and green transformation in industrial development, along with the expansion of demand for high-tech products, has led to a YoY increase in prices in related industries. Prices for integrated circuit packaging and testing series, aircraft manufacturing all rose by 3.6%, wearable smart device manufacturing prices increased by 3.0%, microwave communication equipment prices rose by 2.1%, server prices increased by 0.8%, and prices for semiconductor device manufacturing equipment rose by 0.7%. In addition, the supply-demand relationship in new energy industries such as PV and lithium battery has improved, with narrowed YoY declines in prices. Prices for PV equipment and components manufacturing, and lithium-ion battery manufacturing fell by 12.1% and 5.0%, respectively, with declines narrowing by 0.4 and 0.3 percentage points, respectively, compared to the previous month.

According to data from the National Bureau of Statistics (NBS), in May, the national consumer price index (CPI) decreased by 0.1% YoY. Among them, prices in urban areas remained flat, while those in rural areas decreased by 0.4%; food prices decreased by 0.4%, and non-food prices remained flat; consumer goods prices decreased by 0.5%, while service prices increased by 0.5%. From January to May, the national CPI decreased by 0.1% compared to the same period last year. In May, the national CPI decreased by 0.2% MoM. NBS data also showed that in May, the Producer Price Index (PPI) for industrial producers decreased by 0.4% MoM, the same rate of decline as the previous month, and decreased by 3.3% YoY, with the rate of decline expanding by 0.6 percentage points compared to the previous month. The main reasons for the MoM decline in PPI this month are as follows: Firstly, international imported factors influenced the price decline in related domestic industries. The decline in international crude oil prices affected the price decline in domestic petroleum-related industries, with prices in the oil and natural gas extraction industry decreasing by 5.6%, prices in refined petroleum product manufacturing decreasing by 3.5%, and prices in the chemical raw materials and chemical products manufacturing industry decreasing by 1.2%. The combined impact of these three industries on the MoM decline in PPI was approximately 0.23 percentage points, accounting for more than half of the total decline. Secondly, there was a phased decline in the prices of some domestic energy and raw materials. Coal demand was in the off-season, with sufficient coal reserves in power plants and ports. Additionally, the low cost and strong substitution effect of new energy power generation led to a 3.0% decrease in prices in the coal mining and washing industry and a 1.1% decrease in coal processing prices. The increase in high-temperature and rainy weather in the south China region affected the construction of some real estate and infrastructure projects. Coupled with the sufficient supply of building materials such as steel and cement, prices in the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry both decreased by 1.0%. The combined impact of these four industries on the MoM decline in PPI was approximately 0.18 percentage points. CPI Slightly Declined in May 2025, While Core CPI YoY Growth Rate Expanded —Interpretation of CPI and PPI Data for May 2025 by Dong Lijuan, Chief Statistician of the Urban Department, National Bureau of Statistics In May, the CPI decreased by 0.2% MoM and 0.1% YoY. Excluding food and energy prices, core CPI increased by 0.6% YoY, with the growth rate expanding by 0.1 percentage points compared to the previous month. The PPI for industrial producers decreased by 0.4% MoM, the same rate of decline as the previous month, and decreased by 3.3% YoY, with the rate of decline expanding by 0.6 percentage points compared to the previous month. China is boosting consumption with greater intensity and more precise measures, fostering the growth of new quality productive forces. The supply-demand relationship in some areas has improved, and prices have shown positive changes. I. CPI Slightly Declined, While Core CPI YoY Growth Rate Expanded The shift from an increase to a decrease in the MoM CPI was mainly influenced by the decline in energy prices. Energy prices fell 1.7% MoM, contributing to a decrease of approximately 0.13 percentage point in the month-on-month decline of the CPI, accounting for nearly 70% of the total CPI decline. Among them, gasoline prices dropped 3.8%, with the decline widening by 1.8 percentage points from the previous month. Food prices decreased 0.2%, with the decline being 1.1 percentage points smaller than the seasonal level, contributing to a decrease of approximately 0.04 percentage point in the month-on-month decline of the CPI. Among them, the supply of seasonal vegetables increased, leading to a 5.9% drop in fresh vegetable prices. Prices of eggs, pork, and poultry meat declined slightly and steadily, with declines ranging from 0.3% to 1.0%. Affected by factors such as heavy rainfall in some regions and the summer fishing moratorium, the supply of fresh fruits, freshwater fish, and marine fish decreased, with prices rising by 3.3%, 3.1%, and 1.5%, respectively. As consumer demand continued to recover, coupled with the impact of holidays and cultural and recreational activities held across the country, hotel accommodation and tourism prices rose by 4.6% and 0.8%, respectively, both higher than the seasonal levels. Among them, the increase in hotel accommodation prices reached a record high for the same period in the past decade. With the arrival of the summer clothing season, clothing prices rose by 0.6%. The CPI declined slightly YoY, with the decline remaining the same as the previous month. Among them, energy prices fell 6.1% YoY, with the decline widening by 1.3 percentage points from the previous month, contributing to a decrease of approximately 0.47 percentage point in the year-on-year decline of the CPI, which was the main factor behind the year-on-year decline of the CPI. Policies aimed at boosting consumption continued to show effects, with prices in some areas showing positive changes. The core CPI rose 0.6% YoY, with the increase widening by 0.1 percentage point from the previous month. Among them, prices of industrial consumer goods excluding energy rose 0.6%, with the increase widening by 0.2 percentage point from the previous month. Prices of gold jewelry, home textiles, and cultural and recreational durable consumer goods rose by 40.1%, 1.9%, and 1.8%, respectively, with all increases widening. Prices of gasoline-powered passenger cars and new energy passenger cars fell by 4.2% and 2.8%, respectively, with both declines narrowing. Service prices rose 0.5%, with the increase widening by 0.2 percentage point from the previous month. Among services, rental fees for transportation vehicles, airfares, and tourism prices all turned from decline to increase, rising by 3.6%, 1.2%, and 0.9%, respectively. II. PPI Remains Low, with Price Improvements in Some Sectors The main reasons for the month-on-month decline in PPI this month are as follows: First, international imported factors have influenced the decline in prices of related domestic industries. The decline in international crude oil prices has affected the decline in prices of domestic petroleum-related industries, with prices in the oil and natural gas extraction industry falling by 5.6%, prices in the refined petroleum product manufacturing industry falling by 3.5%, and prices in the chemical raw materials and chemical products manufacturing industry falling by 1.2%. These three industries collectively contributed to a decrease of approximately 0.23 percentage point in the month-on-month decline of the PPI, accounting for more than 50% of the total decline. Second, the prices of some domestic energy and raw materials declined in phases. Coal demand was in the off-season, with sufficient coal reserves at power plants and ports. Coupled with the low cost and strong substitution effect of new energy power generation, the prices of coal mining and washing industry fell by 3.0%, and coal processing prices dropped by 1.1%. Increased high-temperature and rainy weather in south China affected the construction of some real estate and infrastructure projects. Additionally, the supply of building materials such as steel and cement was sufficient. As a result, the prices of ferrous metal smelting and rolling processing industry, and non-metallic mineral products industry both declined by 1.0%. The combined impact of these four industries on PPI was a MoM decline of approximately 0.18 percentage points. Coupled with factors such as a higher comparison base in the same period last year, the YoY decline in PPI expanded by 0.6 percentage points compared to the previous month. However, from the perspective of marginal changes, China's macro policies have been intensively implemented, the supply-demand relationship in some industries has improved, and prices in some areas have shown a positive trend. First, the continuous growth of new consumption momentum has driven the YoY rebound in prices of consumer goods. Policies aimed at boosting consumption have continued to take effect, and the release of demand for some consumer goods has driven price increases in related industries. The MoM decline in consumer goods prices turned to flatness from a 0.2% decline in the previous month. Among them, the prices of clothing, general daily necessities, and durable consumer goods rose by 0.2%, 0.1%, and 0.1%, respectively, driving the YoY decline in consumer goods prices to narrow by 0.2 percentage points compared to the previous month. From an industry perspective, the prices of arts and crafts and ceremonial products manufacturing increased by 12.8% YoY, the prices of footwear manufacturing rose by 0.8%, the prices of computer whole machine manufacturing increased by 0.2%, and the YoY declines in the prices of household washing machines, television manufacturing, and automobile whole vehicle manufacturing narrowed by 1.6, 1.4, and 0.6 percentage points, respectively, compared to the previous month. Second, the development of industries such as high-end equipment manufacturing has driven YoY price increases in related industries. The transformation of industries towards high-end, intelligent, and green development has steadily advanced, with an expanded demand for high-tech products, leading to YoY price increases in related industries. The prices of integrated circuit packaging and testing series, and aircraft manufacturing both rose by 3.6%, the prices of wearable smart device manufacturing increased by 3.0%, the prices of microwave communication equipment rose by 2.1%, the prices of servers increased by 0.8%, and the prices of semiconductor device manufacturing equipment increased by 0.7%. In addition, the supply-demand relationship in new energy industries such as PV and lithium battery has improved, with narrowed YoY price declines. The prices of PV equipment and components manufacturing, and lithium-ion battery manufacturing fell by 12.1% and 5.0%, respectively, with declines narrowing by 0.4 and 0.3 percentage points, respectively, compared to the previous month.

Macro News 1. A spokesperson for the Ministry of Foreign Affairs announced that He Lifeng, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, will visit the UK from June 8 to 13 at the invitation of the British government. During the visit, he will hold the first meeting of the China-US Economic and Trade Consultation Mechanism with the US side. 2. A spokesperson for the Ministry of Commerce answered questions from reporters regarding Minister Wang Wentao's talks with Valdis Dombrovskis, Executive Vice-President of the European Commission for an Economy that Works for People and Commissioner for Trade, during his visit to France. When asked about the discussions between China and the EU on rare earth export controls, the spokesperson stated that Minister Wang Wentao further clarified China's export control policies to the EU side, emphasizing that implementing export controls on items such as rare earths is an international common practice. China attaches great importance to the EU's concerns and is willing to establish a green channel for eligible applications, expedite the approval process, and instruct the working level to maintain timely communication on this matter. 3. When asked by reporters about the progress of price commitment consultations in the anti-subsidy case involving electric vehicles (EVs), the Ministry of Commerce stated that Minister Wang Wentao and Commissioner Dombrovskis had professional and in-depth discussions on the EV case, pushing it a significant step forward towards a proper resolution. Currently, the price commitment consultations between China and the EU on the EV case have entered the final stage, but efforts from both sides are still needed. 4. According to data from the People's Bank of China, as of the end of May, China's gold reserves stood at 73.83 million ounces (approximately 2,296.37 mt), up 60,000 ounces (approximately 1.86 mt) MoM, marking the seventh consecutive month of gold reserve increases. 5. According to statistics from the State Administration of Foreign Exchange, as of the end of May 2025, China's foreign exchange reserves stood at $3,285.3 billion, up $3.6 billion from the end of April, representing a 0.11% increase. 6. In response to questions from reporters regarding export control measures for medium-heavy rare earths, a spokesperson for the Ministry of Commerce stated that rare earth-related items have dual-use (military and civilian) attributes, and implementing export controls on them is in line with international common practices. With the development of industries such as robotics and new energy vehicles (NEVs), the global demand for medium-heavy rare earths in civilian applications is growing. As a responsible major country, China fully considers the legitimate needs and concerns of various countries in civilian applications and reviews export license applications for rare earth-related items in accordance with laws and regulations. It has approved a certain number of compliant applications and will continue to strengthen the approval process for compliant applications. China is willing to further strengthen communication and dialogue on export controls with relevant countries to facilitate compliant trade. Industry News 1. A Boeing 737 MAX aircraft took off from Seattle, US, yesterday and has now landed in Hawaii before continuing its journey to China. This aircraft, originally a new plane awaiting delivery at Boeing's Zhoushan factory, was returned to the US in April. This also marks Boeing's first aircraft delivery to China since April. 2. Chief Executive of the Hong Kong Special Administrative Region, John Lee Ka-chiu, attended and delivered a speech at the opening ceremony of the 16th Cross-Strait and Hong Kong-Macao Economic and Trade Cooperation Seminar hosted by the Chinese Manufacturers' Association of Hong Kong yesterday. Lee stated that Hong Kong is actively developing the artificial intelligence industry and will establish a "Technology and Innovation Industry Guidance Fund" with a scale of HK$10 billion to strengthen the guidance of market funds and promote the development of strategic emerging and future industries such as AI and robotics. 3. According to data from online platforms, as of 19:02 on June 7, the total box office (including pre-sales) for the 2025 summer movie season exceeded 500 million yuan. "Mission: Impossible 8 – Dead Reckoning Part Two," "Children of Time," and "Doraemon: Nobita's Art World Tales" ranked as the top three films in the summer box office. 4. Ding Han, an academician of the Chinese Academy of Sciences and director of the Academic Committee at Huazhong University of Science and Technology, pointed out that humanoid robots represent the core track for industrial explosions, and breakthroughs in dexterous hand technology will be the key to unlocking their vast application potential and defining the future industrial landscape. 5. A Phase II clinical study published by Chinese researchers in the UK medical journal *The Lancet* recently showed significant progress in the treatment of malignant solid tumors using chimeric antigen receptor T-cell (CAR-T) therapy. Compared with standard therapies, CAR-T therapy significantly prolonged the progression-free survival of patients with advanced cancer. Corporate News 1. Christophe Fouquet, CEO of Dutch semiconductor equipment manufacturer ASML, stated that US chip export bans will only backfire. 2. The price of Laomiao Gold's 24K gold jewelry was 999 yuan per gram on June 7, a decrease of 9 yuan per gram from the previous day's price of 1,008 yuan per gram, and a total decrease of 17 yuan over two days. Global Markets 1. On local time June 7, US President Donald Trump stated that if Tesla and SpaceX CEO Elon Musk funds Democratic candidates opposing the Republican budget proposal, he will face "very serious consequences." Trump said, "If he does that, he will pay a price," but did not disclose specific measures. Trump added that he has no intention of repairing his relationship with Musk, stating, "I think that relationship is over."

On Monday, Eastern Time, international gold prices rebounded to $3,400, with both spot gold and COMEX gold futures rising more than 2%. On June 3, domestic brands' gold prices followed suit. Chow Tai Fook's 24K gold jewelry was quoted at 1,020 yuan per gram, up 22 yuan from 998 yuan per gram the previous day; Laomiao Gold's 24K gold jewelry was quoted at 1,019 yuan per gram, up 21 yuan from 998 yuan per gram the previous day; Chow Sang Sang's 24K gold jewelry was quoted at 1,024 yuan per gram, up 20 yuan from 1,004 yuan per gram the previous day; Lao Feng Xiang's 24K gold jewelry was quoted at 1,018 yuan per gram, up 18 yuan from 1,000 yuan per gram the previous day.

SMM, June 3: The flip-flopping of the US tariff policy has once again sparked market concerns over global trade uncertainties; the ongoing Russia-Ukraine conflict has fueled a surge in market risk aversion; coupled with a series of factors such as the US ISM manufacturing PMI for May falling to 48.5, marking the third consecutive month below the 50 mark {{only used when specifically referring to PMI}}, have all contributed to the recent strengthening of precious metals. During the Dragon Boat Festival holiday, COMEX precious metals surged by 2.82%, with COMEX silver rising by 5.61%. This also drove the domestic precious metals market to strengthen on the first trading day after the Dragon Boat Festival. As of around 13:15 on June 3, COMEX gold fell by 0.3%, trading at $3,387.1 per ounce; COMEX silver fell by 0.96%, trading at $34.36 per ounce; SHFE gold rose by 1.62%, trading at 784.74 yuan/g; SHFE silver rose by 2.32%, trading at 8,413 yuan/kg; and silver T+D rose by 2.79%, trading at 8,408 yuan/kg. The precious metals equity sector also saw a significant surge, at one point leading the gains across all industries. As of around 13:14 on June 3, the precious metals sector rose by 3.7%. Among individual stocks, Western Gold surged by the daily limit, while Xiaocheng Technology, Chifeng Gold, Sichuan Gold, and Hunan Gold were among the top gainers. News Updates Domestic Pure Gold Jewelry Prices Return to the 1,000 Yuan Mark (Image sourced from Chow Tai Fook's official website) Following the notable rise in COMEX gold during the Dragon Boat Festival holiday, domestic pure gold jewelry prices also returned to the 1,000 yuan mark. According to Chow Tai Fook's official website, the quoted price for Chow Tai Fook's pure gold jewelry on June 3 was 1,020 yuan/g, up 22 yuan from the previous day's 998 yuan/g. Additionally, Laomiao Gold's pure gold jewelry was quoted at 1,019 yuan/g on June 3, while Chow Sang Sang's pure gold jewelry was quoted at 1,024 yuan/g. World Gold Council: Gold Should Be Considered a High-Quality Liquid Asset, Just Like 30-Year US Treasuries Although gold is classified as a Tier 1 asset under Basel III, it has not yet been recognized as a High-Quality Liquid Asset (HQLA). HQLA is a key classification that the World Gold Council (WGC) seeks to change. Analysts from the WGC, in their latest report, have recommended that the Basel Committee on Banking Supervision (BCBS) re-examine the classification of gold and recognize it as an HQLA, citing significant market volatility so far this year. The WGC pointed out that over the past six months, gold has once again demonstrated many of the key characteristics that an asset must possess to qualify as an HQLA. US Treasuries, particularly 10-year and 30-year bonds, are among the most recognized top-tier HQLAs. However, the WGC noted that in recent months, gold has been moving in tandem with these stable assets. Analysts stated: "Using intraday minute-by-minute data, we found that gold's average daily volatility was 0.027%. This is higher than the 0.016% volatility of 10-year U.S. Treasury bonds (OTR) but aligns with the 0.028% volatility of 30-year U.S. Treasuries (OTR)." ( FX678) Silver Price Surges Above 8,400 Amid Strong Market Caution 》Click to View Spot Prices of Precious Metals Boosted by the strong performance of silver futures, spot silver prices showed significant gains on June 3. On June 3, the average morning ex-works reference price for SMM1# silver was 8,425 yuan/kg, up 245 yuan/kg (3%) from the previous trading day. According to SMM, the premium/discount quotes for spot standard silver ingot warrants in Shanghai were 3-5 yuan/kg, but downstream buyers remained cautious, with minimal transactions at high premiums. Market activity was sluggish, with some standard silver ingot suppliers offering discounts of 25 yuan/kg against the SHFE silver 2508 contract. Large suppliers quoted premiums of 5-8 yuan/kg for silver ingots against TD warrants. Although precious metal prices surged after the Dragon Boat Festival, downstream demand showed no significant improvement, and market sentiment remained cautious, with only limited spot transactions for essential needs. Market Views Huilin Wang, SMM silver analyst, discussed the topic "Silver Supply-Demand Evolution and Price Outlook" at the 2025 SMM (6th) Silver Industry Chain Innovation Conference , hosted by SMM Information & Technology Co., Ltd., co-organized by Ningbo Haoshun Precious Metals Co., Ltd. and Quanda New Materials (Ningbo) Co., Ltd., and sponsored by Fujian Zijin Precious Metals Materials Co., Ltd., Huizhou Yi'an Precious Metals Co., Ltd., Jiangsu Jiangshan Pharmaceutical Co., Ltd., Zhengzhou Jinquan Mining & Metallurgy Equipment Co., Ltd., Hunan Shengyin New Materials Co., Ltd., Zhejiang Weida Precious Metal Powder Materials Co., Ltd., Guangxi Zhongma Zhonglianjin Cross-Border E-Commerce Co., Ltd., Suzhou Xinghan New Materials Technology Co., Ltd., Yongxing Zhongsheng Environmental Protection Technology Co., Ltd., IKOI S.p.A, Hunan Zhengming Environmental Protection Co., Ltd., Kunshan Hongfutai Environmental Protection Technology Co., Ltd., and Shandong Humon Smelting Co., Ltd. She noted: The aging population and rising global economic and political uncertainties have increased safe-haven demand, driving a downward trend in real interest rates; the PV and new energy sectors are experiencing rapid growth, with domestic demand stabilizing and export demand expected to rise; lower real interest rates may boost medium- and long-term allocations to silver assets—these bullish factors could support silver prices to fluctuate upward in the medium to long term. Michele Schneider, Chief Market Strategist at MarketGauge, stated that gold and silver prices have been consolidating, leading her to maintain a neutral outlook on both. However, if silver prices firmly break through the $34 per ounce level, she will seek to buy, as it is only a matter of time before it rises to $40. (Caijing) Yide Futures stated: During the holiday, overseas gold and silver prices mainly rose, with the Comex gold-silver price ratio pulling back significantly. US Treasuries, VIX, and the US dollar fell, while US stocks and crude oil closed higher. On the news front, Lorie Logan, the 2026 voting member and President of the Federal Reserve Bank of Dallas, stated that due to a stable labour market, inflation slightly above target, and an uncertain outlook, the US Fed is closely monitoring a range of data to determine what response measures may be needed. Austan Goolsbee, the 2025 voting member and President of the Federal Reserve Bank of Chicago, stated that after the uncertainties brought about by tariff policies dissipate, the US Fed can continue to cut interest rates. The second round of negotiations between Russia and Ukraine ended hastily, with significant differences remaining between the two sides regarding the conditions for ending the war. On the economic data front, the US May ISM Manufacturing PMI pulled back to 48.5, below the expected 49.5, marking a contraction for three consecutive months. The US April Core PCE Price Index annual rate was 2.52%, the lowest since the start of the disinflation process, with the monthly rate rebounding slightly to 0.12%, the second lowest level of the year. The nominal interest rate rebound exceeded the break-even inflation rate, and the slight rebound in the real interest rate increased pressure on gold. The short-end spread between US and German yields began to widen, strengthening support for the US dollar. On the funding front, funds allocated to gold and silver were increased simultaneously. As of June 3, SPDR holdings were 933.07 mt (+2.86 mt), and iShares holdings were 14,351.82 mt (+48.07 mt). Speculative funds in gold and silver flowed out simultaneously, with the former reducing holdings for six consecutive days. According to CME data released on May 30, total open interest in New York gold futures was 408,800 lots (-13,818 lots); total open interest in New York silver futures was 147,800 lots (-1,481 lots). The overnight leading indicator, the HUI Gold Bugs Index, continued to hit new highs, suggesting that overseas gold has the potential to challenge the all-time high of 3,500. Technically, New York gold and silver are showing a breakout momentum, with the former standing above $3,400 and the latter approaching the year's high. SDIC Futures believes: Precious metals rose during the holiday. Trump's trade policies have fluctuated, with additional tariffs imposed on steel and aluminum again. In terms of data, the US May ISM Manufacturing PMI recorded 48.5, below expectations and the lowest since November 2024. Under the shadow of the trade war, market prospects remain uncertain. Follow-up attention should be paid to the US Court of International Trade's ban on Trump's tariffs and the progress of negotiations between various parties, as precious metals will test the resistance at the previous highs. Industrial Futures analysis suggests: Since the end of May, uncertainties regarding US tariff policies have risen significantly, with repeated signals emerging on reciprocal tariffs, Sino-US trade negotiations, steel and aluminum tariffs, and automobiles. During the holiday, the Russia-Ukraine conflict intensified again. Although Russia and Ukraine held talks in Turkey on Monday, no signals of easing were released. Short-term risk aversion sentiment has intensified, leading to a significant increase in overseas market gold prices. Overall, reviewing the trend of gold prices in May, fluctuations in market risk aversion sentiment had a significant impact on gold prices, which were prone to repeated fluctuations due to multiple factors, with gold prices fluctuating upward! The gold-silver ratio is relatively high, and silver prices generally follow gold price fluctuations. Goldman Sachs suggests that gold and oil can serve as tools to hedge against inflation in long-term investment portfolios, stating that amid concerns about the credibility of US institutions and the ability of crude oil to withstand supply shocks, gold is attractive as a safe haven. Analysts such as Daan Struyven recommend a higher-than-usual allocation to gold and a lower-than-usual allocation to oil (though still positive), stating that commodities are a "key" hedge against inflationary shocks, which tend to harm bond and equity portfolios. Citi has raised its 0-3 month target price for gold to $3,500 per ounce, expecting gold prices to consolidate between $3,100 and $3,500 per ounce. Recommended readings: 》SMM: Industrial demand and ETF investment demand, among others, may support medium and long-term fluctuations and upward trends in silver prices [SMM Silver Conference] 》Analysis of Silver and Gold Price Trends from a Trader's Perspective [SMM Silver Conference] 》Has the Gold Bull Market Just Begun? Analysts Say Historical Experience Suggests Prices Could Reach $4,500

Zhaoyuan in Shandong Province, China's county with the highest "gold content," saw its total output value of the gold industry exceed 100 billion yuan last year, ranking first among all county-level cities nationwide. The region has established an entire gold industry chain, spanning from upstream exploration and mining, midstream smelting and processing, to downstream design and retailing. Amidst the current scenario where gold prices have repeatedly hit new historical highs, the city exudes an air of opulence. Recently, a reporter from Cailian Press visited this small city and engaged in discussions with numerous individuals involved in the local gold industry chain to understand their perspectives on gold price trends, the situation of upstream reserve and production increases, the recent developments in midstream smelting and processing, as well as the new trends emerging in the "time-honored" downstream gold jewelry sector. Upstream: Reserve and Production Increases in Progress The Jiaodong region, where Zhaoyuan is located, is China's largest gold ore concentration area, with proven gold resources exceeding 5,800 mt, accounting for 35% of the country's total reserves. Notable ore-controlling faults in the region include the Sanshandao Fault, Jiaojia Fault, Zhaoping Fault, and Jinniushan Fault. Among them, Zhaoyuan's gold resources are mainly distributed within the fault structures of the Zhaoping Fault Zone, with the Linglong ore field in the north being a world-class ore field with reserves exceeding 1,000 mt. Currently, Zhaoyuan boasts two gold mines under active exploitation that rank among China's top ten gold mines. One of them, the Linglong Gold Mine, belongs to Shandong Gold Group, while the other, the Xiadian Gold Mine, belongs to Zhaojin Group. In addition, enterprises such as China National Gold Group Corporation and Jindu State Investment also possess abundant resources in the local area. With the soaring international gold prices—which surged by 26.8% throughout last year and even exceeded $3,500 per ounce at one point this year—the topic of gold prices has begun to attract increasing discussions. Industry insiders in Zhaoyuan told Cailian Press, "The pricing mechanism of gold is based on credit, influenced by supply and demand dynamics, and underpinned by mining costs. From a medium and long-term perspective, the upward trend is evident." The sustained increase in gold prices has profound implications for gold mining enterprises. On one hand, the production cost per gram of gold for major domestic publicly listed gold firms mostly fell within the 200-300 yuan range last year, and the rise in gold prices directly boosted their profits. On the other hand, the increase in gold prices has made it economically viable to mine ore deposits with lower grades or higher costs, leading to significant reserve and production increases for gold mining enterprises. According to the 2025 Zhaoyuan Government Work Report, key local enterprises in Zhaoyuan "achieved remarkable results in reserve and production increases last year," implementing a total of 17 in-region exploration projects and 2 out-of-region M&A projects. The annual new gold reserves reached 178.2 mt, and self-produced gold output amounted to 28.1 mt, representing increases of 10.5% and 16.1%, respectively. The local target for 2025 is to strive for gold production to exceed 31.25 mt and to increase proven reserves by 33.3 mt. Midstream: Gold Bars in Undersupply Zhaoyuan is not only rich in gold ore resources but also serves as the country's largest base for gold intensive and deep processing. Zhaojin Refining, a subsidiary of Zhaojin Group, is the leading enterprise in the local deep-processing industry chain. It holds certifications from the Shanghai Gold Exchange, Shanghai Futures Exchange, and London Bullion Market Association as a "qualified refiner capable of producing standard gold and silver ingots." With an annual refining capacity of 200 mt of gold and 1,000 mt of silver, it ranks first in the industry in terms of gold refining production. Local industry insiders told Cailian Press that gold refining has become fully marketized, with thin profit margins. Core competitiveness depends on production and management efficiency. However, as gold prices doubled over the past two years, processing fees also rose significantly, leading to a substantial improvement in profitability and keeping the entire industry at a high prosperity level this year. Additionally, Zhaojin Refining collaborates extensively with major domestic banks in the field of gold deep-processing, offering comprehensive services including design, processing, distribution, repurchase, customization, and warehousing logistics for precious metal products. Since last year, there has been an "explosive" surge in public demand for investment gold bars, with orders pouring in continuously. Zhaojin Refining's gold bar production workshop once had its production schedule booked a month in advance, forcing workers to work overtime. Due to its heavy involvement in physical gold trading, upstream and midstream gold mining companies need to use "futures + options" combinations for risk hedging and price protection to mitigate market risks caused by gold price fluctuations. Seizing this opportunity, Zhaojin Group entered the futures market, and its subsidiary Shandong Zhaojin Investment Co., Ltd. became one of the largest gold traders on the Shanghai Gold Exchange, consistently ranking among the top three comprehensive members. This serves as a model for the integration of industry and finance in the gold sector. Downstream: Repositioning of Gold Jewelry The rapid rise in gold prices has not been universally welcomed in the gold industry chain, with some benefiting while others suffer—particularly downstream gold jewelry retailers. This is because when gold prices rise from low levels, the increase stimulates jewelry consumption. However, once prices reach a psychological high, further increases tend to suppress jewelry demand. Consequently, since H2 last year, typical gold jewelry stocks such as Lao Feng Xiang, Caibai Co., Ltd., and China Gold have generally faced declining performance and stock prices, starkly contrasting with the continuous climb in gold prices. However, against the backdrop of persistently high gold prices, will gold jewelry consumption inevitably continue to shrink? In Zhaoyuan, industry insiders hold differing views. "If you look at the three newly emerging jewelry brands—Laopu, Linchao, and Junpei—they remain completely unaffected by the surge in gold prices." The professional attributes this to the core strategy of brands like Laopu, which emphasize ancient-style gold jewelry with a focus on design, craftsmanship, and artistic value. These brands align with the current trend of Chinese aesthetic revival and psychologically "capture" consumers, making them view their purchases as luxury or collectible items, thereby desensitizing them to the relationship between product pricing and real-time gold prices. "This brings us a profound insight: the competition in the gold jewelry industry is increasingly focused on product strength and design. The new generation of consumers, including young people, place greater emphasis on the self-pleasing and collectible attributes of gold jewelry. Only by continuously exerting efforts in this dimension can we break through in an environment of high gold prices." Currently, Zhaojin Group is focusing on building its brand "Zhaojin Silver House" (formerly known as Zhaoyuan Silver Workshop, established in 1908). It has launched product series such as "Contemporary Treasure" and "Dunhuang Splendid Ornaments," attempting to secure a place in the fiercely competitive gold retail market through innovative designs that integrate traditional culture. In Zhaoyuan, beyond the traditional business models of gold mining, smelting, and retail, efforts are being made to explore more economic growth points centered around gold themes. Today, Zhaoyuan is promoting the deep integration of "gold + culture + tourism" offline, attempting to leverage the Gold Town to delve into the millennium-old gold culture and experience the intangible cultural heritage of the Song Dynasty. It is constructing a new pattern of integrated development of industry, culture, and tourism that encompasses "mining gold, making gold, playing with gold, buying gold, and exchanging gold," further cultivating a characteristic cultural tourism IP of "China's Gold Capital." Locals in Zhaoyuan say that the charm of gold lies in its heritage from antiquity, yet it always manages to remain fresh and relevant.

On May 27, amid the doldrums of the broader market, the share price of Hunan Gold also experienced a decline. As of 13:24 on the 27th, Hunan Gold fell by 1.54%, closing at 23.04 yuan per share. When asked, "What are the planned production volumes for the company's self-produced gold, antimony products, and tungsten products in 2025?", Hunan Gold stated on the investor interaction platform on May 27 that, the company plans to produce 72,475 kg of gold, 39,537 mt of antimony, and 1,100 standard mt of tungsten products in 2025. In 2024, the prices of antimony and gold saw significant increases, substantially boosting the profits of many related enterprises. 1# Antimony Ingot saw a 70.73% increase in 2024. 》Click to view SMM antimony metal spot prices 》Subscribe to view historical price trends of SMM metal spot prices In 2024, antimony prices generally surged. Although prices slightly corrected since mid-October 2024, they remained high, resulting in a notable increase for the entire year. From the historical price trend of SMM 1# antimony ingot: the average price of SMM 1# antimony ingot was 82,000 yuan/mt on December 29, 2023, and 140,000 yuan/mt on December 31, 2024, marking an increase of 58,000 yuan/mt over the year, with a 70.73% increase in 2024. In 2025, antimony prices continued the upward trend of 2024. On May 27, the latest quote for SMM 1# antimony ingot was 221,500 yuan/mt, a 58.21% increase compared to the average price of 140,000 yuan/mt on December 31, 2024. The year-to-date high of 238,000 yuan/mt represents a 70% increase compared to the average price of 140,000 yuan/mt on December 31, 2024. After maintaining a firm price at 238,000 yuan/mt for over 20 days, the average price of antimony recently experienced some downward pressure. Although the fundamental supply and demand dynamics in the antimony market have not changed significantly, the substantial suspension of imported ore entering the domestic market has led to a severe shortage of domestic antimony raw materials. Additionally, the overall inventory of antimony products among domestic manufacturers is at historically low levels, prompting manufacturers to maintain stable pricing. In the domestic antimony end-use market, orders for both flame retardants and PV-related antimony products have remained basically stable. Although there has been no recent improvement in orders from the end-use sector, they have not deteriorated either, with a generally good pace of just-in-time procurement. However, due to the recent interplay of bullish and bearish market news, the sentiment in the retail investment market has become chaotic, leading to the entry of some low-priced supplies into the market and causing antimony prices to decline since May 15. Gold prices maintain an overall upward trend, with COMEX gold up nearly 27% year-to-date Following a 13.45% increase in 2023, COMEX gold surged by 27.39% in 2024. Since the beginning of this year, it has repeatedly hit record highs, reaching a peak of $3,509.9 per ounce. With the temporary suspension of US-EU tariff disputes and a rebound in market risk appetite, gold prices experienced a slight correction. However, recent fluctuations in US trade policies and market concerns about the US fiscal outlook have limited the downside room for gold prices. As of 14:33 on May 27, COMEX gold fell by 1.22%, closing at $3,353.2 per ounce, with a year-to-date increase of 26.97% in 2025. Regarding the outlook for gold prices, multiple institutions have the following views: Jinyuan Futures stated that despite the temporary easing of the US-EU trade war, there is still significant uncertainty in subsequent trade negotiations. The global economic outlook remains unclear, and geopolitical risks are frequent. Investors tend to seek more stable asset allocations, and it is expected that gold prices will maintain a fluctuating trend at highs in the short term. Citi has raised its 0-3 month target price for gold to $3,500 per ounce, and expects gold prices to consolidate between $3,100 and $3,500 per ounce. For gold prices at the end of this year and next year, Ningxia Ruiyin Lead Resource Recycling Co., Ltd. maintains a forecast of $3,500 per ounce, with the peak possibly reaching $3,600 per ounce by mid-2026. This is due to considerations of downside risks to economic growth, and the possibility that the US Fed may continue to ease monetary policy. A report previously released by the World Gold Council showed that global gold prices hit record highs 20 times in Q1. Affected by this, the total global gold jewelry consumption decreased by 21% YoY, reaching its lowest point since 2020. However, there was a significant increase in gold investment demand. In Q1, the global gold investment demand was 551.9 mt, a substantial increase of 170% YoY. This indicates that against the backdrop of gold prices repeatedly reaching new highs, global gold jewelry demand has declined, but gold as an investment product is more favored.

[SMM Commentary: Precious Metal Futures and Stocks Performed "Remarkably" This Week, While Spot Silver Trading Remained Sluggish. How Do Major Institutions View the Market Outlook?] On May 23, amid intensifying market concerns over the deterioration of the US fiscal outlook, a weaker US dollar, and ongoing unrest in the Middle East, market risk-averse sentiment surged, driving precious metal futures and stocks to rise in tandem. In the futures market: As of 16:15 on May 23, COMEX gold rose by 1.01%, closing at $3,328.4 per ounce; COMEX silver rose by 0.7%, closing at $33.45 per ounce; SHFE gold rose by 0.1%, while SHFE silver fell by 0.37%, and silver T+D fell by 0.39%. In the stock market: On the 23rd, as the broader market experienced a nearly 1% decline, the precious metals sector bucked the trend and strengthened, ultimately leading the gains across all industries with a 1.96% increase.