Soaring gold prices — now topping $4,600 per ounce — are squeezing Swiss watchmakers already grappling with tariffs and soft demand as consumers increasingly hold back on major luxury purchases. Brands are left with two options: raise prices and pass on costs, or absorb the impact through thinner margins. Breitling is choosing the latter, according to CEO Georges Kern. “You just have to deal with it — it’s like with the tariffs: you cannot transfer the price onto the consumer,” he said, echoing Richemont chairman Johann Rupert’s long-standing caution against excessive price hikes. Still, heavyweights including Rolex, Patek Philippe and Omega have pushed through increases, while independents like H. Moser & Cie. are delaying gold purchases and drawing on inventory bought more than two years ago. Some retailers remain unfazed: “If people really want a gold watch, they know this is the price,” said Brian Duffy, CEO of Watches of Switzerland, adding that “the threat from tariffs was greater — gold is easier to explain because people see it as further evidence of value appreciation.” But Kern warns that only a handful of brands have the pricing power to sustain higher prices, noting that “you need brand image to support that price.” As a result, techniques like “l’or allégé,” or lightened gold, and alternative materials inspired by Richard Mille’s ultra-light watches in titanium, ceramic and carbon-gold blends are gaining attention — though for most brands, such a move may risk clashing with traditional luxury values.