Gold Falls Below $4,000, Impact of China's New Tax
Gold prices fell below $4,000 an ounce early in the Asian session on Monday (November 3rd) after China ended a long-standing tax break for some retailers. The new policy could depress demand in the world's largest gold market, which had been fueled by the tax incentive. Gold bullion for immediate delivery briefly fell 1% before paring most of the intraday losses.
On Saturday, Beijing announced that it would no longer allow retailers to offset value-added tax when selling gold purchased from the Shanghai Gold Exchange and the Shanghai Futures Exchange. The move covers both live and processed gold sales, directly impacting shares of Chinese jewelry companies.
At the time of this analysis's release, the gold price was at $4,008.
- Buy if the price is around $4,015.
- Sell if the price is around $4,001.
Resistance 2: $4,029.
Resistance 1: $4,022.
Support 1: $3,994.
Support 2: $3,987.
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
