Gold Prices Surge After China’s New Tax Policy

Record Gold Prices Amid Chinese Tax Changes

Spot gold prices have risen to $4489.6 per ounce, marking a record high for the 50th time this year. Additionally, spot silver prices reached $70 per ounce, showing a year-to-date rise of approximately 135%.

Yardeni Research has raised its gold price target for 2026 to $6000 per ounce, expecting a further increase to $10,000 by 2029. This upward revision reflects continued optimism about the future of gold as an investment asset.

“Our targets reflect the anticipated consequences of the VAT policy changes on gold and silver costs.” — Yardeni Research

Following China’s announcement of a new taxation policy on gold, retail prices for non-investment gold, such as jewelry, have surged. Affected by the policy’s 7% cost increase, the price of gold jewelry in Shuibei now stands between 1118-1125 yuan/gram.

Expert Analysis: Gold’s Safe-Haven Status Unshaken

Did you know? Gold has surpassed historical highs 50 times this year, driven by global economic factors and China’s recent tax policy adjustments, reflecting a 70% increase since the beginning of the year.

The Chinese Ministry of Finance and the State Taxation Administration’s recent VAT adjustments have limited tax offsets, creating a distinction between investment and non-investment gold. Retail banks have responded with temporary holds on gold account activities.

Expert analysis suggests the long-standing reliance on gold as a safe-haven asset is expected to persist, with regulatory changes and increasing demands supporting higher price targets. Historical trends also indicate a potential shift in investment strategies.