Gold prices firm globally as China’s VAT incentive withdrawal pushes cost pressures into international precious metals supply chain

Global gold prices witnessed upward pressure after China removed its VAT offset incentive on gold sales from November 1, raising domestic retail costs and indirectly impacting demand psychology worldwide. Analysts noted that China’s policy impact does not remain regional due to its significant scale in both physical gold demand and end consumer jewelry consumption. Commodity strategists expect short-term pricing tightness as importers, bullion traders and hedgers recalibrate exposure. The move fits China’s fiscal tightening posture and comes at a time when global inflation moderation signals still remain uneven across major economies.