PRECIOUS METALS | U.S. Inflation Data Triggers Gold and Silver Sell-Off

On May 19, Jin10 reported that international gold and silver prices faced a sell-off due to market speculation on a potential interest rate hike by the U.S. Federal Reserve, following higher-than-expected U.S. inflation data. According to Jin10, the Shenzhen Shuibei gold and jewelry market remains crowded, but the significant price fluctuations have affected consumer trading interest, prompting many businesses to adjust their strategies. A store manager noted, "Sales volume has dropped significantly, down by about 50% year-on-year. We have returned to wholesale operations. Gold transaction rates are low, and silver has seen a steep decline, with investors largely absent." In contrast to the retail sector's downturn, the processing sector for gold and silver products is experiencing a surge in activity. A processing company executive mentioned that their business volume has noticeably increased compared to the same period last year, with many clients opting to process and hold onto their gold and silver products for the long term rather than engaging in frequent buying and selling. According to CCTV Finance.