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High-end jewellery firm Tiffany & Co has opened a new outlet store in the northern port city of Tianjin just as gold and platinum prices are hitting new highs in China.

The 130-square-meter store is the fifth Tiffany outlet on the Chinese mainland. The previous four were located in Beijing and Shanghai.

"Domestic jewellery firms are facing great challenges when more and more international luxury retailers are opening outlets in China," said a Tianjin government official.

The appeal of gold as an alternative investment is increasing in China as its price is forecast to keep rising in the medium to long term.