Will the introduction of the gold taxation policy affect the price of gold?

The Ministry of Finance announced on November 1st that the Ministry of Finance and the State Administration of Taxation recently issued the "Announcement on Gold-related Tax Policies", which will be implemented from November 1, 2025, until December 31, 2027. The announcement specifies that taxpayers who do not sell standard gold through exchanges should pay value-added tax according to current regulations. It is understood that when ordinary consumers purchase "physical gold" such as gold jewelry, the retail price usually already includes value-added tax and consumption tax. Industry experts predict that the direct impact of this policy on gold jewelry consumption will be limited. For ordinary investors, they may be more inclined to participate in gold investment through exchange products offered by banks, such as accumulation gold, gold ETF, etc. The announcement also clarifies that before the end of 2027, no value-added tax will be levied on member units or clients who sell standard gold through the Shanghai Gold Exchange or the Shanghai Futures Exchange when the selling party, being a member unit or client of the exchange, sells standard gold. If physical delivery and extraction do not occur, the exchange is exempt from value-added tax. If physical delivery and extraction occur, the investment-use and non-investment-use of standard gold are distinguished, and the value-added tax refund policy is applied accordingly, as well as the policy of exemption from value-added tax and the calculation of input tax deduction for the purchasing party at a rate of 6%.