Gold price falls below $4000 due to the impact of the cancellation of the value-added tax deduction policy for gold retail.

The price of gold fell below $4,000 per ounce, as traders digest the impact of China's cancellation of the value-added tax deduction for gold retail. This move could dampen demand in this important global precious metals market. Gold prices fell 0.5% to around $3,985 per ounce at one point. The Ministry of Finance released new regulations on Saturday, stating that starting from November 1st, some retailers selling gold purchased from the Shanghai Gold Exchange will no longer be eligible for the value-added tax deduction, whether they sell directly or after processing.