A gold shop Photo: VCG

TheMKsport recent decline in international gold prices has captured the Chinese market's attention, prompting adjustments in the domestic gold accessories sector, where many well-known brands have been cutting prices.

Despite it being a weekday, some customers were observed purchasing gold jewelry at a shopping center in Shanghai on Wednesday.

The price of gold accessories at Chow Sang Sang stood at 783 yuan ($108) per gram on Wednesday, down 5 yuan from the previous day and significantly below the prices seen during the "Double 11" online shopping festival that began earlier this month, an employee from the store told the Global Times. 

Similarly, the price at Chow Tai Fook stood at 785 yuan per gram on Wednesday, a stark contrast to this year's peak of 826 yuan per gram from the brand, a staff member at the booth told the Global Times. She anticipated an increase in foot traffic over the weekend, as consumer enthusiasm remains high.

The drop in gold prices has led some consumers to buy while prompting others to sell their holdings. 

A Shanghai-based gold recycling agent, surnamed Tang, noted a surge in individuals selling gold jewelry over the past few weeks, driven by concerns that prices of the yellow metal may continue to fall.

"In terms of reselling prices, there has been a decline of 20 yuan per gram compared with the beginning of the month. Our current buyback price is about 580 yuan per gram," Tang told the Global Times on Wednesday.

Gold prices edged up on Wednesday after steep declines in the previous session. On Tuesday, spot gold fell below the $2,600 per ounce mark for the first time since September 20. 

Qu Fang, an analyst at Wanlian Securities, attributed the adjustment to a technical correction after two years of rising prices.

Additionally, the recent strength of the US dollar has exerted downward pressure on gold prices, Qu told the Global Times on Wednesday.

"Despite the current decline, gold will remain an important asset choice for investment and safe haven," Qu said.

China's benchmark prices for spot interbank gold transactions were lower on Wednesday, according to the China Foreign Exchange Trade System.

The benchmark price for gold that is 99.95 percent pure or above stood at 606.75 yuan per gram, down 5.51 yuan from the previous trading day, while the price for gold that is 99.99 percent pure or above fell 10.49 yuan to 602.81 yuan.