Di Yi Cai Jing·2025-11-04 12:13Core Viewpoint - The new tax policy on gold trading has led to significant market fluctuations, with merchants in the Shui Bei market adopting a wait-and-see approach and adjusting gold prices accordingly [1]. Group 1: Tax Policy Impact - The announcement from the Ministry of Finance and the State Taxation Administration on November 1 introduced differentiated tax management for gold based on investment and non-investment uses, increasing the effective tax burden by approximately 7% for processing businesses [1]. - Merchants previously relying on tax evasion practices are now facing higher compliance costs, prompting them to raise prices to maintain profit margins [1]. Group 2: Market Reactions - On November 3, gold prices in the Shui Bei market surged from approximately 930 CNY per gram to 996 CNY per gram within a single day, marking a daily increase of over 66 CNY per gram, the largest rise in five years [1]. - Major jewelry brands, including Chow Tai Fook, have announced price adjustments for gold products in response to the new tax policy, indicating a broader trend among retailers to reassess pricing strategies [3]. Group 3: Global Gold Demand Trends - According to the World Gold Council's report, global gold demand reached a record high of 1,313 tons in Q3 2023, with a total value of 146 billion USD, driven primarily by a 47% year-on-year increase in investment demand [3]. - In China, retail gold investment and consumption demand totaled 152 tons in Q3, a 7% year-on-year decline, but the monetary value surged to 120.4 billion CNY, reflecting a 29% increase compared to the previous year, marking the highest level for Q3 [4].