Hong Kong's gold dealers report surging demand as Lunar New Year approaches, with retail clients buying small bars and coins as traditional gifts. Trading volumes have soared compared with last year, driven by prices holding near record highs. The seasonal buying spree typically peaks in the weeks before the holiday, when gold gifts symbolize prosperity and good fortune.

However, supply constraints, particularly in silver, are raising concerns about whether the momentum can last. Dealers say limited availability could cap further gains despite strong consumer interest. The precious metals market has seen heightened volatility recently, with gold prices fluctuating around all-time highs amid economic uncertainty and geopolitical tensions.

This Lunar New Year demand surge highlights gold's enduring cultural significance in Asia while testing market resilience. If supply bottlenecks persist, they could dampen what has been a robust start to the year for precious metals trading in Hong Kong. The situation underscores how seasonal traditions and market fundamentals intersect in shaping short-term price movements.