‘More than at a vegetable market’: China's gold market sees record crowd as bullion falls below $4,000
The rush at Shenzhen’s Shuibei gold market coincided with a sharp correction in international bullion prices. Spot gold fell below the psychologically significant $4,000-per-ounce mark on October 23, closing at $3,995.63, down 0.72%.
- Oct 26, 2026,
- Updated Oct 26, 2026 10:39 AM IST
A dip in global gold prices has triggered a buying rush at Shenzhen’s gold trading hub in China, with crowds packing shopping aisles as bargain hunters look to capitalise on the price correction.
Photos and videos shared by netizens on Chinese social media platforms showed aisles so congested that shoppers could barely move, according to a report by Global Times. The scenes quickly sparked a wave of online reactions, with users describing the market as “booming” and “packed with people”.
“There are more people here buying gold than you'd find at a vegetable market,” one widely shared comment said, capturing the scale of the rush.
The surge in footfall highlights the strong appetite for gold among Chinese consumers, even as global prices fluctuate sharply. For buyers, a pullback in prices offers an opportunity to purchase the precious metal at relatively lower levels after a prolonged period of elevated valuations.
Gold prices fall below $4,000 an ounce
The rush at Shenzhen’s Shuibei gold market coincided with a sharp correction in international bullion prices. Spot gold fell below the psychologically significant $4,000-per-ounce mark on October 23, closing at $3,995.63, down 0.72%. The yellow metal recorded its steepest weekly decline since June, falling about 4% over the week.
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The price decline was quickly reflected in Chinese jewellery markets. On October 24, several major jewellery brands reduced their quoted prices for gold ornaments by 6 to 12 yuan per gram compared with the previous day.
Prices stood at approximately 1,196 yuan per gram at Laomiao Gold, 1,200 yuan at Chow Sang Sang, 1,202 yuan at Chow Tai Fook and 1,206 yuan at Lao Feng Xiang. Retail gold jewellery prices had fallen by around 100 yuan per gram over the preceding month.
For consumers who had been waiting for a correction, the lower prices offered an opportunity to make purchases that had become more expensive during gold's earlier rally.
Why Shenzhen's Shuibei market matters
Shuibei, located in Shenzhen's Luohu district, is one of China's largest gold and jewellery trading centres and a major node in the global jewellery supply chain. The market brings together wholesalers, retailers, manufacturers and individual buyers, making it an important destination for people seeking a wide selection of gold ornaments.
The market has already experienced substantial footfall during China's National Day holiday earlier in October. Average daily visitor numbers approached 60,000 during the holiday period, while sales rose 28% year-on-year.
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The latest crowds suggest that the combination of falling prices and consumer interest continues to draw buyers to the market.
Why falling prices are attracting buyers
Gold occupies a dual role in China: it is both a jewellery purchase and a traditional store of value. A price correction can encourage consumers who had postponed purchases during the rally to return to the market.
Some shoppers time their purchases around price movements, selecting jewellery in advance and waiting for prices to fall before buying. Younger consumers and people purchasing gold for weddings have also been among those visiting the market.
However, crowded aisles do not necessarily translate into a corresponding increase in completed transactions. High footfall can also reflect shoppers comparing prices, browsing designs or waiting for further declines.
What is driving the gold sell-off?
The latest decline has come amid mounting concerns about inflation, interest rates and global liquidity.
Rising oil prices have renewed fears that inflation could remain elevated, strengthening expectations that the US Federal Reserve may have to keep interest rates higher for longer or raise them further. Higher interest rates tend to weigh on gold because the metal does not generate interest income, making interest-bearing assets relatively more attractive.
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Gold has also faced selling pressure as losses in equity markets have prompted some investors to liquidate assets to meet margin calls and raise cash.
Despite the correction, the rush at Shuibei illustrates how lower prices can revive physical demand even as financial-market investors reassess gold's near-term outlook.
For now, the crowded corridors and viral social media posts offer a striking picture of consumer interest. Whether that interest translates into sustained buying will depend on the direction of gold prices and how shoppers assess the risk of further declines.
A dip in global gold prices has triggered a buying rush at Shenzhen’s gold trading hub in China, with crowds packing shopping aisles as bargain hunters look to capitalise on the price correction.
Photos and videos shared by netizens on Chinese social media platforms showed aisles so congested that shoppers could barely move, according to a report by Global Times. The scenes quickly sparked a wave of online reactions, with users describing the market as “booming” and “packed with people”.
“There are more people here buying gold than you'd find at a vegetable market,” one widely shared comment said, capturing the scale of the rush.
The surge in footfall highlights the strong appetite for gold among Chinese consumers, even as global prices fluctuate sharply. For buyers, a pullback in prices offers an opportunity to purchase the precious metal at relatively lower levels after a prolonged period of elevated valuations.
Gold prices fall below $4,000 an ounce
The rush at Shenzhen’s Shuibei gold market coincided with a sharp correction in international bullion prices. Spot gold fell below the psychologically significant $4,000-per-ounce mark on October 23, closing at $3,995.63, down 0.72%. The yellow metal recorded its steepest weekly decline since June, falling about 4% over the week.
MUST READ | Digital gold purchases jump 83%: Is convenience changing how Indians buy gold?
The price decline was quickly reflected in Chinese jewellery markets. On October 24, several major jewellery brands reduced their quoted prices for gold ornaments by 6 to 12 yuan per gram compared with the previous day.
Prices stood at approximately 1,196 yuan per gram at Laomiao Gold, 1,200 yuan at Chow Sang Sang, 1,202 yuan at Chow Tai Fook and 1,206 yuan at Lao Feng Xiang. Retail gold jewellery prices had fallen by around 100 yuan per gram over the preceding month.
For consumers who had been waiting for a correction, the lower prices offered an opportunity to make purchases that had become more expensive during gold's earlier rally.
Why Shenzhen's Shuibei market matters
Shuibei, located in Shenzhen's Luohu district, is one of China's largest gold and jewellery trading centres and a major node in the global jewellery supply chain. The market brings together wholesalers, retailers, manufacturers and individual buyers, making it an important destination for people seeking a wide selection of gold ornaments.
The market has already experienced substantial footfall during China's National Day holiday earlier in October. Average daily visitor numbers approached 60,000 during the holiday period, while sales rose 28% year-on-year.
DON'T MISS | SGB returns cross 350% in 8 years: Does gold still make sense as yellow metal hits 3-month low?
The latest crowds suggest that the combination of falling prices and consumer interest continues to draw buyers to the market.
Why falling prices are attracting buyers
Gold occupies a dual role in China: it is both a jewellery purchase and a traditional store of value. A price correction can encourage consumers who had postponed purchases during the rally to return to the market.
Some shoppers time their purchases around price movements, selecting jewellery in advance and waiting for prices to fall before buying. Younger consumers and people purchasing gold for weddings have also been among those visiting the market.
However, crowded aisles do not necessarily translate into a corresponding increase in completed transactions. High footfall can also reflect shoppers comparing prices, browsing designs or waiting for further declines.
What is driving the gold sell-off?
The latest decline has come amid mounting concerns about inflation, interest rates and global liquidity.
Rising oil prices have renewed fears that inflation could remain elevated, strengthening expectations that the US Federal Reserve may have to keep interest rates higher for longer or raise them further. Higher interest rates tend to weigh on gold because the metal does not generate interest income, making interest-bearing assets relatively more attractive.
DO CHECKOUT | Gold prices fall sharply before Diwali: Should you buy now or wait for a deeper correction?
Gold has also faced selling pressure as losses in equity markets have prompted some investors to liquidate assets to meet margin calls and raise cash.
Despite the correction, the rush at Shuibei illustrates how lower prices can revive physical demand even as financial-market investors reassess gold's near-term outlook.
For now, the crowded corridors and viral social media posts offer a striking picture of consumer interest. Whether that interest translates into sustained buying will depend on the direction of gold prices and how shoppers assess the risk of further declines.