Gold price finally began to go down after hovering at a high level for more than a month. AU9999 and AU9995, the two major gold varieties for trading, were quoted below 140 yuan a gram at Shanghai Gold Exchange.

The gold price decline is closely relevant to the international gold price fluctuation. Zhang Bingnan, head of Beijing Gold Economic Research Group Center, explained that the international gold price soared to the 26-year record high of 579 USD on Feb. 2 this year, pushing China gold price up to 147yuan a gram, also a new high since the gold trading was launched in the country.

However, arbitrage fund sensed the chance of cashing and the price drop was actually largely dragged down by funds selling-off.

In addition, the demand for gold shrank after the Spring Festival spending spree and that immediately squeezed the gold price.

By People's Daily Online