Hong Kong gold shops become buyers as local price hits all-time high
Hong Kong's gold jewellery shops are reversing the usual course of business by stepping up efforts to buy the precious metal from customers, after the local price hit a record high.
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Gold in Hong Kong traded at an intraday record high of HK$30,930 per tael troy (US$3,991 for 37.429 grams) before closing at HK$30,710 on Thursday, a day after it broke through the HK$30,000 level, according to data from the Hong Kong Gold Exchange.
The price has shot up 27 per cent this year, on top of a 26 per cent increase last year.
The local gold price has tracked the international gold price, which hit a fresh record high of US$3,357.60 per troy ounce (31.10 grams) on Thursday, driven by demand for safe-haven assets amid market volatility triggered by the escalating trade war, according to Brian Fung, CEO of the exchange.
'The US tariff policy has led to highly uncertain stock and currency markets, which has led investors and central banks to rush to buy gold,' Fung said.
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'For Hong Kong jewellery shops, they have to change their usual business strategy, so instead of focusing on selling gold products to clients, the rising gold price means they want to buy gold from customers to make money.'
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