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During the May Day holiday, the price of gold in China dropped significantly, with well-known brands such as Chow Tai Fook and China Gold Group returning to prices below 600 yuan per gram, and even dropping to less than 500 at one point. However, this price drop did not bring booming business. On the contrary, business at many gold shops was unusually sluggish. Some owners said that gold sales hit a new low in nearly 20 years. Analysts believe that the downturn in the Chinese economy, a decrease in people's income, an increase in unemployment, and increased life pressures have led to a decrease in purchasing power. In addition, the frequent fluctuations in gold prices recently have also affected consumers' willingness to buy. In a situation where the gold price is unstable or expected to fall, consumers are more inclined to wait and postpone their purchases. #chinaobserver All rights reserved.