Di Yi Cai Jing·2025-11-04 13:16Core Insights - The recent tax policy changes by the Ministry of Finance and the State Administration of Taxation have led to increased compliance costs for gold merchants, prompting them to raise prices to maintain profit margins [1][3] - The gold price in the Shui Bei market experienced a significant surge, reaching approximately 996 yuan per gram, marking the largest single-day increase in five years [1][2] - The new tax policy aims to differentiate tax management based on the investment and non-investment use of gold, which is expected to reduce speculative behavior in the market and promote healthy competition [3] Industry Impact - Merchants in the Shui Bei market are currently hesitant to engage in transactions, opting to observe market conditions due to the new tax regulations [1][2] - Major jewelry brands, including Chow Tai Fook, have begun adjusting their prices in response to the increased costs associated with the new tax policy [3] - A report from the World Gold Council indicates that global gold demand reached a record high in Q3 2023, driven primarily by investment demand, which surged by 47% year-on-year [3] Market Demand - In Q3 2023, China's retail gold investment and consumption demand totaled 152 tons, reflecting a year-on-year decline of 7% and a quarter-on-quarter drop of 38% [4] - Despite the decline in volume, the monetary value of China's retail gold investment and consumption demand reached 120.4 billion yuan, representing a 29% year-on-year increase and setting a record for Q3 [4]