Rising gold prices amid heightened tensions between the United States, Israel and Iran have prompted Hong Kong residents to line up at gold shops in Yau Ma Tei, even on a rainy Tuesday.
Some buyers said they were confident that ongoing geopolitical uncertainty would continue to support bullion prices.
A man surnamed Wong said he visited the area specifically to purchase gold. He revealed that he had previously bought several taels and remained optimistic about further price gains.
“The price of gold will rise more if there is a war,” he said.
When asked about the possibility of prices retreating if tensions ease, Wong said he was investing for the long term and was not concerned about short-term volatility. He added that the conflict was only one factor in his broader investment strategy.
Another resident, surnamed Tse, said she regularly buys gold and has been closely monitoring developments in Iran. However, she believes the impact on gold prices may be limited.
Even if the conflict ends, she expects only limited downside for bullion prices.
Not all residents were buying. Some took the opportunity to sell their holdings while prices remained elevated.
A man surnamed Ng said prices had already climbed at the onset of tensions and believed the situation involving Iran would push them even higher. However, he anticipated that prices “will definitely fall back” and decided to sell at what he described as a high level to lock in profits.
Concerned that a swift de-escalation could trigger a correction, Ng said he had sold all of his gold holdings.
Another resident, surnamed Tam, also chose to take advantage of the higher prices.
Tam said she noticed gold rising amid the conflict and wanted to sell while prices were strong. She added that she would cash out part of her holdings but retain some gold as a store of value.
