The world’s second largest economy China has taken a big step regarding the gold market! From November 1, 2025, Beijing is now going to end VAT tax exemption on gold sales. With this decision, gold may become costlier in China by 3% to 5%, which will have a direct impact on the pockets of the common consumer. Actually, China’s economy is currently going through a slowdown, and the government needs to increase its revenue. That is why now the decision has been taken to increase the tax on gold. But it will also have a direct impact on countries like India — because when demand in the world’s largest gold market decreases, gold prices in India may remain stable for some time. However, experts say that gold will still remain strong in the long term, because continuous purchases by central banks, interest rate cuts in America and geopolitical uncertainty will keep it a safe-haven asset.

Former US President Donald Trump has abolished the speculation of potential heavy tariffs on gold. In his social media post, he clearly wrote – “Gold will not be tarifed!” After this statement, there was a sharp decline in gold prices. The US gold futures fell 2.5% to $ 3,404.70 an ounce for December delivery, while gold in India fell ₹ 408 to ₹ 99,550. Earlier it was estimated that 39% of tariffs could be levied, increasing prices, but now investors are relieved.