Gold edged lower in the early Asian session amid lingering worries over China ending a tax incentive on sales of the precious metal, effective Nov. 1. ...

Core Viewpoint - Gold prices declined in early Asian trading due to reports that China is terminating a tax incentive for gold sales, effective November 1 [1] Group 1 - The decision by China to end the tax incentive is expected to impact gold sales significantly [1] - The change in policy may lead to a decrease in demand for gold in the Chinese market [1] - This development could influence global gold prices and trading strategies [1]

China is scrapping a long-standing gold tax incentive in a potential setback for consumers in one of the world’s top bullion markets https://t.co/CcnUWl2pRG ...

Industry Overview - The Zacks Automotive - Original Equipment industry is expected to benefit from acquisitions, collaborations, a diverse customer base, and the global expansion of original equipment manufacturers [1][2] - The industry focuses on designing and producing passive safety systems, driveline, and metal forming technologies for various vehicle types, including electric and hybrid vehicles [2] Factors Influencing the Industry Outlook - Automation technology is enhancing efficiency, productivity, quality, and safety while reducing labor costs for manufacturers, providing a competitive edge [3] - A new tax incentive allows car buyers to deduct up to $10,000 annually in auto loan interest from their federal taxable income, which is anticipated to increase demand for new vehicles [4] Demand and Production Trends - A decline in vehicle production due to weak demand, particularly for unsold electric vehicles, is expected to negatively impact the demand for auto equipment [5] - The U.S. government has implemented a 25% import tax on essential auto components, raising costs for domestic equipment manufacturers [6] Industry Performance and Valuation - The Zacks Automotive - Original Equipment Industry ranks 91, placing it in the top 37% of over 250 Zacks industries, indicating positive near-term prospects [7][8] - The industry has underperformed the S&P 500, declining 3% over the past year compared to the S&P 500's growth of 16.6% [10] - The industry is currently trading at an EV/EBITDA ratio of 18.57X, higher than the S&P 500's 17.77X and lower than the sector's 22.63X [13] Company Highlights - **Gentex Corporation (GNTX)**: Supplies automatic-dimming mirrors and electronics, with growth potential in tech products and a recent acquisition of VOXX International expanding its portfolio [16][17] - **Adient plc (ADNT)**: A leading automotive seating supplier focusing on automation and modularity, with a diverse customer base and international presence [22][23] - **American Axle & Manufacturing Holdings, Inc. (AXL)**: A supplier of driveline systems advancing in electrification, with a strong market position bolstered by recent acquisitions [26][27]