A visitor examines items at a gold jewelry and gem crafts fair in Shanghai. The Shanghai Gold and Jewelry Trade Association said retail prices for gold will rise to 182 yuan (US$22.69) a gram from 174 yuan from today.

Gold jewelry prices in Shanghai will hit a new high at local shops from today and may climb further amid soaring demand for the metal whose prices have already surpassed its 25-year high in the global markets.

The Shanghai Gold and Jewelry Trade Association told Shanghai Daily yesterday that local base retail prices for gold jewelry will rise to 182 yuan (US$22.69) a gram from 174 yuan from today.

Buyers may find local jewelry shops like Shanghai Lao Miao Jewelry and Shanghai Laofengxiang selling the metal even at 186 yuan a gram, as the association allows a 3 percentage point range over the price.

The base retail gold prices in Shanghai markets have gained 19 percent after five price markups since December 13.

Prices of platinum jewelry will also gain to 326 yuan a gram from 320 yuan.

Industry watchers said consumers' enthusiasm for the metals may not be dampened despite the record high prices.

"Consumers have a sentiment to buy more amid rising prices as they worry the precious metals will be even more expensive in the future," said Duke Lee, managing director of Prime Platinum International Ltd. "That's why consumption of the metals may not be pulled down by the higher prices in the short term."

The boom in weddings this year - Year of the Dog - may also further boost the demand for and buying of gold and platinum jewelry by couples.

There is a preference for Chinese to buy a heavy pair of gold bracelet marked with phoenix and dragon as a traditional wedding present while the more fashionable ones prefer platinum wedding rings with a diamond.

The 99.95 percent pure gold for immediate delivery closed at 152.93 yuan a gram yesterday on the Shanghai Gold Exchange, down 0.15 yuan. This purity, mostly used to make gold jewelry, hit a record high of 153.41 yuan a gram last Friday.

Gold for June delivery rose as much as US$9.40, or 1.6 percent, to US$601.90 an ounce on the Comex division of the New York Mercantile Exchange last week, beating US$600 for the first time since January 6, 1981.

Editor: Yan