Overview
- Beijing curtailed a long-standing VAT offset for many non-investment gold sales, cutting the deductible rate to 6% from 13% through end-2027 and reserving the full incentive largely for exchange members selling investment products.
- Spot bullion fell as much as 1% in Asian trade and briefly dipped below $4,000 per ounce, leaving prices more than 10% off October’s record yet still over 50% higher year-to-date.
- Chinese jewellery shares slumped following the policy shift, with Chow Tai Fook down as much as 12%, Chow Sang Sang off more than 8%, and Laopu Gold dropping over 9%.
- India showed pockets of resilience, with MCX gold near ₹1.21–1.23 lakh per 10 grams and some city prices firmer on local buying and a softer dollar despite the global pullback.
- A firmer greenback after the Fed’s hawkish tone added pressure on bullion, while market participants flagged PMIs, ADP and ISM readings and the US Supreme Court tariff hearing on November 5 as near-term catalysts for direction.