The base retail price of gold jewelry will increase to 240 yuan (US$32.98) a gram from 232 yuan today as global gold prices hit a new high, the Shanghai Gold & Jewelry Trade Association, which sets base prices for gold and platinum, said today.

In 2007, the association adjusted the retail price of gold 31 times, 20 of which were increases. The gold price in Shanghai has been close to international prices.

The gross sales of gold jewelry in the city surpassed 16 billion yuan with more than two tons of gold bullion being sold last year, doubling that of 2006, according to the association.

The world gold price hit a 30-year high at US$855 an ounce last night. Higher gold prices translate into a higher cost for jewelers.

China became the world's second-biggest gold jewelry market last year, overtaking the United States. India is the biggest gold jewelry market.

The demand for gold jewelry increased about 20 percent last year due to rising personal incomes and capital gains from the stock and property markets, according to researcher GFMS Ltd.

(Shanghai Daily January 8, 2008)