Gold Surge Sparks Profit-Taking Frenzy in Shanghai
Gold's relentless rally past $5,500 per ounce has triggered a selling spree across Shanghai, with residents liquidating jewelry and bullion at record prices. The metal's 20% year-to-date gain—fueled by geopolitical tensions and economic uncertainty—has transformed gold shops into bustling trading floors.
"Some jewelry just collects dust. At these prices, selling is logical," remarked one seller, echoing a sentiment driving China's retail gold market. A single 100-gram bar now commands ~122,000 yuan ($17,560), creating arbitrage opportunities for holders of dormant assets.
Central bank accumulation and dollar diversification strategies initially propelled the rally, but retail profit-taking has recently pressured prices downward by 5%. This paradoxical dynamic highlights gold's dual role as both institutional reserve asset and household piggy bank.
