Gold Holds Near $4,000 As China Ends Retailer Tax Rebate

Benzinga

Gold held near $4,000 an ounce after China cut tax rebates for retailers, a move expected to weaken domestic demand. The new rules reduce VAT offsets on non-investment gold, triggering a sell-off in Hong Kong jewelry stocks. Despite the change, gold remains up over 50% this year on strong central bank buying and safe-haven demand.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Gold steadying around $4,000 in outs on Monday after Beijing ended a long-standing tax remade

00:07for some retailers, a policy shift that made dampened demand in the world's biggest gold

00:11market, according to Bloomberg. New rules limit the value-added tax offset on non-investment gold

00:17from 13% to 6%, affecting jewelry and electronics producers, as well as non-member sellers of

00:22investment gold. Chinese jewelry stocks fell sharply in Hong Kong after China's tax change.

00:28The channel has said we're likely to prompt the industry to raise prices to offset higher costs.

00:33Despite the pullback, gold remains up more than 50% year and date, supported by Central Bank

00:37and Safe Haven Demand.

00:38For all things money, visit Benzinga.com.

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