- China ended a tax rebate system for gold, no longer allowing retailers to offset VAT, causing domestic gold prices and jewelry stocks to plunge.
- The new rule applies to both investment and non-investment gold, and reduces the VAT exemption for non-investment gold from 13% to 6%.
- The tax change is expected to increase costs for the jewelry industry, likely leading to higher prices for consumers.
- After an initial drop in Asian markets, international gold prices rebounded in London, with the bullish sentiment for gold remaining strong.
- Despite recent volatility, gold prices are still up over 50% for the year, supported by central bank buying, U.S. rate cuts, and safe-haven demand.
Source: bloomingbit.io
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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