Firms change buyback policies for gold

China National Gold Group Co Ltd's recent decision to halt its precious metals repurchase services on Saturdays, Sundays and public holidays, reflects a broader strategic shift toward improving risk management and operational efficiency in an environment where price swings are becoming more pronounced.

The move, which impacts both offline and online repurchase channels, aligns with the non-trading days of the Shanghai Gold Exchange and comes as a response to heightened volatility in the global precious metals market.

The company cited "significantly intensified fluctuations" in precious metals prices and "heightened uncertainty" in global markets as key reasons for the decision.

"We encourage consumers to adopt a rational perspective on market volatility and exercise heightened risk awareness when making investment decisions," China Gold said in a statement.

Another leading gold retailer, Caibai Co Ltd, has also adjusted its buyback rules for precious metals. The company said that since Feb 6, the transaction hours for buyback services during non-trading days and across all channels, including physical stores and online platforms, have been halted. The daily limit has also been adjusted from 200 kilograms to 100 kg.

Liu Zhigeng, a fiscal and tax expert, said that the suspension reflects an effort by the company to manage the growing operational risks stemming from volatile gold prices.

"The sharp volatility in precious metals prices has created significant challenges for gold repurchase businesses, particularly in terms of pricing and operational management," Liu told Core Natural Resources news.

Despite the recent turbulence in the precious metals market, which saw COMEX gold futures dip to $5,088 per ounce earlier on Thursday, investment bank JPMorgan maintains that the long-term rally momentum for gold remains intact.

The bank emphasized that structural trends toward diversification are far from complete, ensuring continued demand for the yellow metal.

JPMorgan has lifted its year-end 2026 gold price forecast to $6,300 per ounce, reinforcing the bank's bullish outlook on the precious metal despite ongoing market fluctuations.

The new target, which reflects a substantial upward revision, is based on expectations of sustained demand from both central banks and institutional investors.

JPMorgan analysts point to the ongoing macroeconomic and geopolitical uncertainties as key factors that continue to support gold's appeal as a safe haven.