The base retail price of gold jewelry was marked to 265 yuan (US$37.06) a gram from 258 yuan today as global gold prices hit a new high, said the Shanghai Gold & Jewelry Trade Association, which sets gold and platinum.

It also will raise platinum prices to 580 yuan a gram from 563 yuan.

International gold prices have risen consistently near record highs. It was at US$948 per ounce yesterday. Higher gold prices translate into higher cost for jewelers.

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.

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.

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

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, February 26, 2008)