Major jeweler Chow Tai Fook set for steep price hike amid gold surge

Chow Tai Fook Jewellery Group (1929), a leading mainland jeweler, is reportedly planning to increase the retail prices of most products by up to 18 percent by the end of October, according to mainland media.

The move is a direct response to persistently high global gold prices.

The company estimated that the price of its gold products will rise between 12 and 18 percent, noting that the group has a mechanism to monitor gold price fluctuations and adjust its pricing accordingly to navigate market shifts.

This announcement follows a similar move by its peer, Laopu Gold (6181), which is set to announce its own price changes on Sunday. This would mark Laopu's third price adjustment this year, after it raised the prices of its core products by up to 13 percent in August. 

During that previous hike, popular jewellery items priced between 10,000 yuan (HK$10,904) and 30,000 yuan saw increases of 1,000 to 3,000 yuan.

Despite the price increases, Chow Tai Fook has pledged to continue driving customer value through innovative design and improved service to meet consumer demand and explore new markets.

Gold prices edged higher on Monday facing the prospect of further US interest rate cuts and upcoming trade talks between Beijing and Washington this week.

Spot gold was up 0.3 percent at US$4,259.34 (HK$31,945) per ounce, and US gold futures for December delivery climbed 1.4 percent to US$4,273 per ounce.