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Gold Slips Back Below $4,000 as Rate-Cut Bets Fade

A new Chinese tax rule that cuts VAT relief for some retail sales is further weighing on demand in the world’s biggest gold market.

Overview

  • Spot prices hovered under $4,000 on November 4, dipping toward $3,980 after a volatile start to the week.
  • Fed officials declined to endorse a December cut, and market odds for another move fell to about two-thirds, keeping the dollar firm.
  • Beijing ended a long-standing VAT offset for certain gold sold by retailers sourcing from Shanghai exchanges, a shift expected to lift consumer prices and curb jewelry demand.
  • India’s MCX December contract traded near Rs 1.21 lakh per 10 grams, with analysts expecting range-bound action as traders watch ADP and ISM data.
  • Regional markets remained jumpy, with Pakistan’s per-tola rate rebounding to around Rs 423,862 as local associations tracked rapid global price swings.