Chow Tai Fook Shares Lose $7.2 Billion as Gold Rally Hurts Sales
- Stock to notch the longest stretch of monthly drops since 2013
- Goldman expects gold price to rise to $2,500 per ounce in 2025
July’s selloff has extended Chow Tai Fook’s stock decline from a March high to more than 40%, wiping out $7.2 billion in market value.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s largest jewelery retailer is at risk of a prolonged share decline as a surge in gold prices threatens to squeeze its returns and curb demand.
Chow Tai Fook Jewellery Group’s shares have dropped 15% in July, set to stage its longest monthly losing streak since 2013. Now, with the precious metal’s price widely expected to hit a fresh record high, the worst may not be over yet for the jeweler.