Overview
- Spot prices fell as much as 1% in Asia and briefly under $4,000 an ounce after Beijing scrapped a long‑standing VAT offset for certain retailers buying from the Shanghai exchanges.
- China’s update limits input VAT offsets to 6% for non‑investment gold through 2027 while keeping incentives for exchange members selling investment products, and Chinese jewelry shares dropped on the news.
- A stronger dollar and the Federal Reserve’s 25-basis-point cut paired with a hawkish tone reduced expectations for another near‑term cut, weighing on non‑yielding bullion.
- Local markets reflected the turbulence: India’s MCX December futures hovered near Rs 1.21 lakh per 10 grams as city quotes diverged, and Pakistan’s benchmark rate rose Rs 1,300 per tola to Rs 423,862.
- Analysts point to near‑term consolidation as traders watch private US data releases and a November 5 US Supreme Court tariff hearing, with central‑bank buying and ETF inflows still underpinning the broader trend.