The base retail price of gold jewelry increased to 246 yuan (US$33.96) a gram today from 240 yuan as global prices hit a new high, according to Shanghai's gold jewelry authority.

The retail price of 24K gold jewelry in big-named stores increased to 252 yuan a gram, said the Shanghai Gold & Jewelry Trade Association, which sets base prices for gold and platinum.

It is the city's second increase in gold jewelry prices this year.

The price increased to 240 yuan a gram from 232 yuan as global gold prices hit a 30-year high at US$855 an ounce on January 8.

The global price of the metal hit US$900 an ounce last night.

The long undervalued gold price has begun to rebound due to social and economic development, Xu Wenjun, secretary general of the association said.

Xu estimated that the global gold prices will increase to US$1,200 an ounce this year.

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.

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

(Shanghai Daily January 15, 2008)